Back
2 Mar 2015
UK manufacturing PMI rises more than expected to 7 month high – ING
FXStreet (Barcelona) - James Knightley, Senior Economist at ING, reviews the UK data released today, viewing that the strong bounce in manufacturing PMI to 54.1 suggests a modest re-acceleration in manufacturing activity, and supports ING’s 0.7%qoq forecast for 1Q15 GDP growth.
Key Quotes
“The UK’s manufacturing purchasing managers’ index has improved by more than expected in February. It now stands at 54.1 versus 53.1 in January and is above the consensus prediction of 53.3.”
“This is also the strongest reading since July last year so suggests a modest re-acceleration in manufacturing activity is underway.”
“The only concern is that it appears to be purely driven by domestic activity given that export orders dropped back, not helped by ongoing weakness in the Eurozone economy and the strengthening of sterling.”
“Other UK data was modestly encouraging with mortgage approvals increasing to 60,800 from 60,500 in December while there was a slight increase in consumer credit.”
“All in all, the numbers appear consistent with our view that 1Q15 GDP growth will come in at around 0.7%QoQ versus 0.5%QoQ in 4Q15.”
Key Quotes
“The UK’s manufacturing purchasing managers’ index has improved by more than expected in February. It now stands at 54.1 versus 53.1 in January and is above the consensus prediction of 53.3.”
“This is also the strongest reading since July last year so suggests a modest re-acceleration in manufacturing activity is underway.”
“The only concern is that it appears to be purely driven by domestic activity given that export orders dropped back, not helped by ongoing weakness in the Eurozone economy and the strengthening of sterling.”
“Other UK data was modestly encouraging with mortgage approvals increasing to 60,800 from 60,500 in December while there was a slight increase in consumer credit.”
“All in all, the numbers appear consistent with our view that 1Q15 GDP growth will come in at around 0.7%QoQ versus 0.5%QoQ in 4Q15.”