Thursday's session was marked by UK Manufacturing PMI data. August saw solid rebounds in the trends in UK manufacturing output and incoming new orders. Companies reported solid inflows of new work from both domestic and export sources, the latter aided by the sterling exchange rate. Employment rose for the first time in the year-to-date. At 53.3 in August, the seasonally adjusted Markit/CIPS Purchasing Managers’ Index recovered sharply from the 41-month low of 48.3 posted in July following the EU referendum.
Friday's session brought UK Construction PMI data. Purchasing prices rose at the fastest pace for just over five years amid reports that exchange rate depreciation had acted as a catalyst for increased charges among suppliers of construction materials. At 49.2 in August, the seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index remained below the 50.0 no-change threshold for the third consecutive month. However, the index was up from July’s 85-month low (45.9), and the latest reading signalled the slowest pace of decline since the downturn began in June.
This week markets will be looking at:
Services PMI (Monday 10:30)
Industrial Production (Wednesday 10:30)
Inflation Report Hearings (Wednesday 15:15)
