Tuesday, May 03, 2011
Slower manufacturing growth, modest retail sales
Posted by David Smith at 01:00 PM
Category: Thoughts and responses

Manufacturing has been driving the recovery so the news that the purchasing managers' index for the sector dropped to a seven-month low of 54.6 in April is not good. Domestic orders appear to be the culprit but one or two doubts have also crept in about the global recovery. Manufacturing is still growing but more slowly than it was at the start of the year, when the index was over 60.

Meanwhile, a balance of 21% of retailers said high street sales were up on a year earlier in the first two weeks of April, according to the CBI, but expectations for May are much weaker. The CBI's distributive trades survey is hit by unfortunate timing. The first two weeks of April excludes Easter, while the first two weeks of May will exclude most of the recent splurge of holidays. More here.