Yesterday's session brought UK Manufacturing PMI data. February saw the rate of expansion in the UK manufacturing sector slow back towards the stagnation mark. Output growth eased sharply, as levels of incoming new business showed little movement on one month earlier. The slowdown was also reflected in the labour market, with job losses registered for the second straight month.
At 50.8 in February, down from 52.9 in January, the seasonally adjusted Markit/CIPS Purchasing Manager’s Index posted its lowest reading since April 2013 – the first month of the current 35month sequence of expansion. Analysts were expecting smaller decline to 52.3. The growth rate of manufacturing production slumped to a seven-month low in February, led by sharp decelerations in the consumer and investment goods sectors.
The February PMI registered 49.5 percent, an increase of 1.3 percentage points from the January reading of 48.2 percent. Analysts were anticipating smaller incline to 48.5. Comments from the panel indicate a more positive view of demand than in January, as 12 of our 18 industries report an increase in new orders, while four industries report a decrease in new orders.
On Wednesday, Construction PMI data will be published. Slight increase to 55.5 is anticipated. In the US session ADP job figures will be released. Analysts predict incline by 185,000.
Figures to watch:
Construction PMI (Wednesday 10:30)
ADP Non-Farm Employment Change (Wednesday 14:15)
