Sterling had its best day in almost seven weeks on Monday as the UK manufacturing industry expanded faster than expected throughout November. Sterling lost traction last week after the Bank of England (BoE) re-stated that interest rate rises would be limited and gradual, but a larger than anticipated increase in manufacturing Purchasing Managers’ Index (PMI) has seen this downward pressure relieved. Although manufacturing makes up a relatively small percentage of the total UK economy, it is performing well compared to the Eurozone manufacturing sector as a whole, underlining the relative strength of the UK’s economy.
Today sees growth data from the construction industry, which has had a particularly strong 2014 thanks to a buoyant housing market. This figure is expected to drop slightly from the previous month, but still show robust growth throughout the sector.