UK composite PMI posted strong results in January. It grew by 0.8pts to 56.1, as manufacturing output increased by 4.1pts to 58.6, recording its highest level since June 2014. The services PMI output also edged up by 0.1pt to 55.6, while January construction headline index dropped by 2.8pts, erasing December's growth.
Services new business grew by 0.5pts to 56.8, while business expectations declined by 0.3pts to 67.5, recording a three-year low. Employment rose by 0.8pts to 54.7 m/m, while input prices edged down by 1.1pts.
"Today's release only confirms our cautious macro view on economic activity, with economic growth to slow into 2016 to 1.9% (from 2.2% in 2015)," says Barclay in a research note.
