wrapper

UK Manufacturing PMI rose to 51.9

Monday, Aug 03 2015
The start of the third quarter saw conditions in the UK manufacturing sector remain relatively subdued. Although the headline seasonally adjusted Markit/CIPS Purchasing Manager’s Index edged higher to 51.9 in July, from a 26-month low of 51.4 in June, it remained below the average for the current sequence of growth that began in April 2013 (54.3). However, it was above expected incline to 51.6.
 
The struggling manufacturing sector, and the impact of the strong pound on export performance, will be a worry for the Bank of England. However, with the goods-producing sector accounting for only one-tenth of the economy, these woes may take second place to the health of the far larger services sector in determining the timing of the first interest rate hike, suggesting firms will have to adjust to the pound trading at its current highs. 
 
Scratching beneath the surface of the headline manufacturing numbers shows that the sector is still reliant on the domestic market to drive overall demand, and on the consumer sector in particular. The continued weakness of investment goods demand suggests that ‘rebalancing’ remains firmly in the rhetoric as opposed to reality column. 
 
After the data Sterling edged higher but immediately pulled back currently being traded few points below 1.5610 area. Pair is likely to find support around 1.5550 level and resistance above 1.5660 area. Later today, in the US session, ISM Manufacturing PMI figures are scheduled for a release.
More in this category: « Euro little changed after PMI figures US PMI at a three-month low »

Latest from Editor

About Us

Forex Web News is part of Rolling Capital Network providing financial consulting.

Within the Forex Web News we provide our readers with expert and timely technical analyses, fundamental analyses and news; with one aim – for our readers to make best possible financial decisions.

Forex Web News desks and analysis department follow the international markets closely and create high quality proprietary content on a both daily and weekly basis.

.

All our analysts have several years of trading and analysis experience. The Forex Web News analysis team creates daily and weekly analyses and offer forecasts regarding where they believe the markets are heading. Our readers are provided with data displayed both in texts and on graphs, providing them the fullest understanding of what is happening in the market place.

We are constantly growing our news desks and our analysis departments as we strive to broaden the content we provide to visitors of the Forex Web News.

Disclaimer

Rolling-capital.com – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. rolling-capital.com bears no responsibility for any trading losses you might incur as a result of using any data within the Forex Web News.