UK manufacturing PMI hits 6-month highs at 54.2 in Dec, a positive surprise
|The manufacturing sector activity in the UK economy extended its upbeat momentum in the month of December, the latest data from Markit showed on Wednesday.
The manufacturing Purchasing Managers' Index (PMI) in the UK arrived at 54.2 points in December, as compared to a previous 53.1 reading. Markets had predicted the PMI to tick lower to 52.5.
Key Points:
New order and new export order inflows strengthen.
Stocks of purchases and finished goods rise sharply.
Rob Dobson of Markit commented in the release, “December saw the UK PMI rise to a six-month high, following short-term boosts to inventory holdings and inflows of new business as companies stepped up their preparations for a potentially disruptive Brexit.”
“Stocks of purchases and finished goods both rose at near survey-record rates, while stock-piling by customers at home and abroad took new orders growth to a ten-month high. Any positive impact on the PMI is likely to be short-lived, however, as any gains in the near-term are reversed later in 2019 when safety stocks are eroded or become obsolete.”
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.