UK Manufacturing Activity Slows, Retail Sales Subdued

Arthi Gupta
03 May, 2011
New York City

The UK indexes slid after manufacturing activity slowed and retail sales growth remained subdued in April. Irish manufacturing activity improved in April. Experian acquired majority stake in Computec for $400 million.

[R]3:30 PM London – The UK indexes slid after manufacturing activity slowed and retail sales growth remained subdued in April. Irish manufacturing activity improved in April. Experian acquired majority stake in Computec for $400 million.[/R]

The Bank of England Governor Mervyn King told the European Parliament on Monday that an increase in the long-term interest rates could pose massive economic challenges, given the high level of indebtedness.

In London, FTSE 100 Index declined 0.33 or 0.01% to 6,069.81 and the pound edged lower to close at $1.6477.

UK Manufacturing Activity Slows

The UK manufacturing sector activity growth eased to a seven-month low in April, data from Markit Economics showed today.

The headline seasonally adjusted Markit/Chartered Institute of Purchasing & Supply (CIPS) Purchasing Managers'' Index declined to 54.6 in April, from a revised 56.7 in March.

UK Retail Sales Growth Subdued

Retail sales in the UK increased in April, but the pace of growth remains subdued, a survey from the Confederation of British Industry showed.

The CBI’s latest Distributive Trades Survey, which covers the two-week period from March 30, found that 45% of retailers saw the volume of sales rise in the year to April, while 24% said they fell. The resulting balance of +21% was in line with expectations.

For April, 12% of retailers reported sales to be good and 35% said they were poor; the resulting balance of minus 23% was the lowest since August 2009.

Irish Manufacturing Activity Improves

Irish manufacturing sector expanded at a faster pace in April, led by solid gains in new orders and output, survey by Markit Economics showed on Tuesday.

The seasonally adjusted NCB/Markit purchasing managers'' index rose to 56 in April, from 55.7 in March.

Experian Acquires Stake in Computec

Experian Plc signed an agreement to acquire the majority of the shares in Computec S. A., a Latin American credit services information provider, based in Colombia. The acquisition is expected to further strengthen Experian''s Latin American presence, building on the leading market position Experian has established in Brazil.

The offer price is COP$10,419 per share, equivalent to a valuation of COP$736 billion for 100% of the equity amounting to around $400 million.

Gainers & Losers

Aberdeen Asset Management Plc rose 2.14% to 233.90 pence after the asset management company reported first-half revenue rose 31% to £385.9 million from £294.9 million in the year ago period. Pre-tax profit in the period increased 83.4% to £109.1 million compared to £59.5 million a year ago.

BHP Billiton Ltd. declined 1.77% to $98.39 after the diversified natural resources company said the partners of Samarco had approved the $3.5 billion Fourth Pellet Plant Project at Samarco, Brazil.

GoIndustry-DoveBid Plc fell 1.38% to 128.20 pence after the company engaged in the service, management and disposal of surplus industrial assets reported fiscal year 2010 revenues fell 4.5% to £40.09 million from £41.99 million in the previous year.

Hikma Pharmaceuticals Plc climbed 0.76% to 791.50 pence after the multinational pharmaceutical company announced the completion of its $112 million acquisition of Baxter Healthcare Corporation''s U.S. generic injectables business, ""Multi-Source Injectables"" or ""MSI"", significantly enhancing the scale and scope of its global Injectables platform.

X5 Retail Group N.V. dropped 1.93% to $34.57 pence after the retailer sold IT Business, its e-commerce unit which operates the bolero.ru and 003.ru online stores. Terms of the deal were not revealed.