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GBP: disappointing manufacturing PMI data

By Callum Holmes February 2nd, 2018

Sterling climbed higher against the dollar yesterday despite some slightly disappointing manufacturing PMI data. It has been expected to come in at 56.5 but the figure was actually 55.3 which was the lowest reading for seven months. Still, it represents relatively healthy growth.

Year-on-year, Nationwide housing prices were at 3.2% against an expectation of 2.5%, while month-on-month they came in at 0.6% against an expectation of 0.2%. Meanwhile, UBS said they expected the Bank of England to raise interest rates in May if a Brexit transition deal is agreed. They did add the caveat that they didn’t agree with that, but it is important to be as subjective as possible when making these types of predictions.

Today’s only real release is the construction PMI for January. It was 52.2 and is expected to climb to 52.8 and, given the manufacturing PMI yesterday, it will be interesting to see if it comes in as, below, or above forecast.


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