While economists expected UK manufacturing PMI to show an improvement from April to May, the final figure was significantly better than anticipated.
The Pound Sterling Exchange Rate was in the region of 1.5282 against the US Dollar as of 10:05 GMT
Industry experts envisaged that the gauge of manufacturing activity compiled by Markit and the Chartered Institute of Purchasing and Supply would rise from 49.8 in April to 50.3 in May, just above the 50 mark which separates growth from contraction.
But with new orders accelerating and output increasing across a broad level, the index actually jumped to 51.3 – a 14 month high.
April’s original figure of 49.8 was also upwardly revised to 50.2.
According to the report export business contributed a modest increase in new order inflows, but the domestic market was largely responsible the gain.
In a statement issued with the report Markit’s chief economist Rob Dobson asserted: ‘The UK manufacturing sector had a spring in its step in May, as a brightening domestic market led to faster growth of output and new orders […] Output is also likely to be raised further in the coming months […] The tentative return to job creation in the sector in May also suggests that manufacturers are becoming more confident in the outlook.’
Dobson continued: ‘Following the solid growth registered by the service sector in the first quarter GDP numbers, signs that the manufacturing sector is also recovering will add further weight to the Bank of England’s decision to wait-and-see before adding to its accommodative policy stance.’
The Bank of England will issue its rate decision on Thursday.
Prior to the release of this morning’s UK manufacturing data the Pound strengthened to an almost two-week high against the US Dollar and posted a modest gain against the Euro.
After the data was published Sterling extended gains, achieving 1.5284 against the US Dollar and 1.1763 against the Euro.
Gains against the Euro were limited however, as positive data for the currency bloc also allowed the Euro to advance.
Current Pound Sterling (GBP) Exchange Rates:
< Down > Up
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5282 >
The Pound Sterling/Euro Exchange Rate is currently in the region of: 1.1732 >
The Pound Sterling/Australian Dollar Exchange Rate is currently in the region of: 1.5841 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9153 >
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6542 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8523 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6313 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5224 <
(As of 10:05 GMT)
Comments are closed.