Following a disappointing start to the week over the August bank holiday, sterling continued to struggle on Tuesday following the release of a disappointing manufacturing Purchasing Managers’ Index (PMI) reading. With growth in this sector forecast at 51.9, a reading of 51.5 was poorly received by the markets. Sterling fell across the board on the back of this data, as manufacturing figures from across Europe showed more positive results. Some respite was found against the US dollar throughout the afternoon as equally poor manufacturing growth data was released from the states.
Today we see further PMI data released from the UK, with data due from the construction industry this morning. This is expected to show significant growth throughout last month, although another disappointing reading could see sterling suffer.