The UK manufacturing PMI falls to the lowest since June 2013 with 52.5 points, indicating weak growth. Markit’s purchasing managers’ index for the manufacturing sector was expected to slide to 55.1 points in August after 55.4 points in July, which was now revised down to 54.8 points. This is the first PMI out of three.
GBP/USD had a good start to the new month, rising to 1.6640 towards the publication. It is now sliding, but not fully erasing the previous gains.
Other figures published in the UK:
- Net Lending to Individuals was predicted to slide from 2.5 billion to to 2.4 billion in July. Actual: 3.4 billion, better than expected.
- M4 Money Supply carried expectations for a rise of 0.5% in July. Actual: +0.3%.
- Mortgage approvals were predicted to slide to 66K in July. Actual: 67K.
The jump in net lending somewhat counters the fall in the manufacturing figure.
For more, see the GBPUSDÂ prediction.
The Bank of England convenes to make its monthly rate decision. No change is expected this time. The earlier expected move is likely in November.
