020 7898 0500After yet another extended weekend, we returned to some positive news from the UK manufacturing sector. After last week’s disappointing first quarter (Q1) Gross Domestic Product (GDP) numbers, this unexpected performance came as a huge relief.
The purchasing managers’ index (PMI) surged to 57.3 in April, up from 54.2 in March. This shows that the sector grew at its fastest pace in three years. The fall in the value of sterling helped boost demand.
The figures released needed to be received in context, as the manufacturing sector only accounts for less than 15% of the UK economy.
Sterling strengthened against the euro yesterday following the release of better-than-expected UK manufacturing data.
Meanwhile, over the weekend, Standards & Poor’s affirmed the UK AA credit rating but also stated that the outlook is still negative. In addition, the EU-27 leaders agreed the Brexit negotiation guidelines. Comments from the German finance minister have set the tone, stating that the UK should understand it will not have an advantage over the 27 EU members after Brexit.
The remainder of the week will focus on the other two sectors of the UK economy. Later today, the PMI for the construction sector will be released, followed by the headline service sector on Thursday.
