London Report: Survey figures forecast to show more UK growth
MANUFACTURING data, due out today, is the first of the UK survey figures that will be the highlights of this week’s economic calendar.
Construction figures will follow tomorrow and services data on Wednesday, with all sectors expected to show further growth. Industrial production data is due on Friday.
Martin Beck of Capital Economics said: “On balance, we think the (manufacturing) PMI could have strengthened in January to around 58, from 57.3 in December.
“This should set the stage for a period of strong growth in the manufacturing sector, which we think could grow by over three per cent in 2014.”
On Thursday the Bank of England Monetary Policy Committee (MPC) will meet to decide on interest rates. However, the MPC is thought likely to keep any change on hold ahead of the publication of its quarterly inflation report next week.
The corporate calendar begins this week with reports from Anglo Platinum, Creston, Future, Goldenport Holdings, Randgold and Ryanair.
Tomorrow BP and BG Group announce earnings, while Alumasc Group, ARM Holdings, Delphi Automotive, Kofax, Low & Bonar, Victrex, St Modwen Properties, TalkTalk, Ocado, Electrocomponents and UDG will also update the market.
Deutsche Bank remained pessimistic about Ocado’s full-year figures, giving the retailer a “sell” rating and a price target of 440p, despite last year’s tie-up with Morrisons supermarket.
The analysts said: “While we expect Ocado to remain a key player in the development of the UK grocery landscape, we find it difficult to justify a premium valuation to Amazon, given slower sales growth.
On Wednesday Wolfson Microelectronics is due to give full-year figures while Hargreaves Lansdowne, Daily Mail and General Trust, GSK, GW Pharmaceuticals, Homeserve, Quintain Estates and Development and Icap are due to give figures.
AstraZeneca, Beazley and Smith & Nephew are all due to give yearly figures on Thursday.
Avon Rubber, Compass Group, Dairy Crest Group, Darty, easyJet, Enterprise Inns, Grainger, Investec, LondonMetric Property, SuperGroup, TUI Travel and Vodafone Group will all be giving updates.
Finally on Friday, Acal will be giving an update.