Data released earlier on Friday showed UK's manufacturing sector activity in the UK economy surprised the markets to the upside in the month of June, accelerating further into the expansion territory and hitting a five-month high. It is, however, worth noting that responses included in the final index readings were received prior to the end of June 23 (the day of UK’s EU referendum).
The seasonally adjusted Markit/CIPS Purchasing Managers’ Index (PMI) posted 52.1, up from a revised reading of 50.4 in May, its highest level since January. Data beat expectations for a 50.0 print.
New orders rose at the quickest pace since last October, reflecting the ongoing strength of the domestic market and a marginal uptick in new export business. Sector data pointed to a broad-based improvement in operating conditions during June. The trend in manufacturing employment remained negative during June.
Average input costs increased for the second successive month in June. Although the rate of inflation was only moderate, and well below its long-run trend pace. June also saw a mild increase in selling prices.
“The industry has built some momentum in recent months. Whether this is sustainable in a post-Brexit world as the UK returns to a period of uncertainty, is anyone’s guess,” said David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply.
The material has been provided by InstaForex Company – www.instaforex.com