020 7898 0500Sterling had a good end to a very mixed week on Friday, following the release of manufacturing PMI. The figure had been expected to drop to 53.5 in May from 53.9 the month before, but it actually came in at 54.4. The growth was largely attributed to the steepest build-up of finished goods inventories in the 26-year history of the survey.
However, new business rose the least in almost a year, while the pace of job creation hit its lowest mark for 15 months. The markets often overlook context, but keep this information in mind when anticipating future releases – the picture is not quite as rosy as it first appears.
Today we will see construction PMI for May which will give us further indication of how the economy has been performing. It is expected to drop a little from 52.5 in April to 52.0 in May. Tomorrow we’ll see new car sales for May and services PMI for the same month.
