U.K. Data Cast Fresh Doubt Over Strength of British Economy

Manufacturing index at 17-month low, consumer borrowing slumps
Pound weakens as reports further damp bets on May rate hike

I’d be "backing off" from a rate hike if I was on the BOE’s monetary policy committee, Jim O’Neill says.Source: Bloomberg

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By Jill Ward, David Goodman, and Andrew Atkinson

May 1, 2018 at 8:30 AM UTC

Updated on

May 1, 2018 at 10:48 AM UTC

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U.K. manufacturing slowed more than predicted in April and consumers borrowed at the weakest pace in 5 1/2 years in March, adding to signs that the economy’s poor first-quarter performance could persist.

IHS Markit said its monthly Purchasing Managers Index was at 53.9, from a downwardly revised 54.9 in March. A 17-month low, it was worse than economists had forecast and hardened expectations the Bank of England will refrain from raising borrowing costs on May 10. The pound fell as much as 0.7 percent.