FXStreet (Mumbai) – UK Manufacturing PMI came in at three-month high of 52.9 in January, beating estimates. It came in higher than 52.1 reading recorded in December.Improved domestic demand supported an expansion of output.
Manufacturing production increased again during January, reflecting improved inflows of new work from the domestic market. Moreover, the rate of expansion in output accelerated to a 19-month high. The trend in new export orders, however, fell back into decline.
Lower overseas sales were however attributed to to stronger competition and tough market conditions.
Looking beneath the surface of the headline numbers showed that the prime drivers of the output growth acceleration were the consumer and investment goods sectors. A solid rate of expansion was also signalled by intermediate goods producers. The performance of large-sized manufacturers was especially positive, whereas growth was comparatively mild at SMEs.
(Market News Provided by FXstreet)