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3 Aug 2015
UK manufacturing PMI continued to expand in July
FXStreet (Mumbai) - The headline seasonally adjusted Markit/CIPS Purchasing Manager’s Index (PMI ) rose to 51.9 in July, from a 26-month low of 51.4 in June.
EUR/GBP hurts export orders
The official report says the rate of growth in new export orders declined for the fourth straight month in July, mainly as a result of the sterling-euro exchange rate hitting competitiveness in Eurozone markets.
Manufacturing employment rose for the twenty seventh successive month in July. Average input prices declined in July for the first time in ten months, mainly on account of the strength in the British Pound. Input prices rose for the second time in the past three months. Moreover, the rate of inflation was the sharpest registered since August 2014.
As per Rob Dobson, Senior Economist at survey compilers Markit, “Although an uptick in the headline PMI breaks the decelerating trend in UK manufacturing, growth remains near-stagnant and suggests that the sector is continuing to act as a drag on the economy. With the sterling-euro exchange rate still sapping export demand and constraining growth of total order inflows, its seems that we will again look to the service sector to sustain any semblance of reasonable economic growth in the third quarter.”
EUR/GBP hurts export orders
The official report says the rate of growth in new export orders declined for the fourth straight month in July, mainly as a result of the sterling-euro exchange rate hitting competitiveness in Eurozone markets.
Manufacturing employment rose for the twenty seventh successive month in July. Average input prices declined in July for the first time in ten months, mainly on account of the strength in the British Pound. Input prices rose for the second time in the past three months. Moreover, the rate of inflation was the sharpest registered since August 2014.
As per Rob Dobson, Senior Economist at survey compilers Markit, “Although an uptick in the headline PMI breaks the decelerating trend in UK manufacturing, growth remains near-stagnant and suggests that the sector is continuing to act as a drag on the economy. With the sterling-euro exchange rate still sapping export demand and constraining growth of total order inflows, its seems that we will again look to the service sector to sustain any semblance of reasonable economic growth in the third quarter.”