UK Final Manufacturing PMI beats estimates with 55.1 in Feb, GBP/USD off the lows
|The UK manufacturing sector activity expanded at a faster pace than expected in the month of February, the final report from IHS Markit confirmed on Monday.
The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was revised higher to 55.1 in February versus 54.9 expected and 54.9 first readout.
The figure climbed to a two-month high amid the upward revision.
Key points
Growth subdued by stretched supply chains and rising costs.
Business optimism rises to near six-and-a-half year high.
Rob Dobson, Director at IHS Markit, commented on the survey
“The UK manufacturing sector was again hit by supply chain issues, COVID-19 restrictions, stalling exports, input shortages and rising cost pressures in February. Look past the headline PMI and the survey reveals near stagnant production, widespread shipping and port delays and confusion following the end of the Brexit transition period.”
“In fact the biggest contributor to the headline PMI reading was a near-record lengthening of supplier delivery times. However, while normally a positive sign of an increasingly busy economy, the recent lengthening was far from welcome, more often than not linked to problems resulting from Brexit and COVID related.”
GBP/USD reaction
The GBP bulls found some support from the upbeat UK Final Manufacturing PMI, as GBP/USD jumped back on the bids, having hit a daily low of 1.3927 pre-data release.
The spot was last seen trading at 1.3940, up 0.06% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.