Majority of UK sectors see output growth

As more parts of the UK economy continue to flourish, latest figures show that the majority of UK sectors have experienced output growth.

As many as 10 out of the 14 sectors monitored by Lloyds Bank UK Sector Tracker reported output growth in February – this signifies a 10-month high for the number of sectors experiencing growth.

This was more than in January (when the figure stood at eight) and the most since April 2023, which was 10.

Both software providers and financial services firms recorded the strongest rates of output growth.

Scott Barton, Managing Director, Lloyds Bank Corporate & Institutional Banking, said, “It’s encouraging that we are seeing activity increase across more parts of the UK economy.

“Moreover, a further rise in output expectations across most sectors suggests these trends have further to go. However, the data also shows that the impact of renewed supply chain disruptions is a headwind that firms will need to carefully navigate.

“Similarly, if firms are ramping-up production in anticipation of future demand, it’s critical that they consider how they can build the inventory they need and where to invest in their businesses while still protecting their working capital.

“Getting this balance right will mean they can continue to be financially agile and able to mitigate against any sudden movements in the economy or external environment.”

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