Markit’s purchasing managers’ index for the British manufacturing sector printed: 50.8 points in January 2013. The market had expected a small slide from 51.4 to 51 points. A score above 50 points represents growth, and a score beneath this figure reflects contraction.
GBP/USD traded around 1.5850 before the release. and remains stable, as the figure is within expectations. Update: Cable is now sliding to 1.5835.
The previous PMI for December was the first positive one after 7 prints below 50.
This is the first PMI in a series that will continue next week. The most important sector is the services sector. The economy in the UK isn’t doing so well – the first GDP release for Q4 2012 showed that the economy is contracting.
After slipping below 1.57 earlier in the week, GBP/USD began a journey to the upside, and settled above 1.5850. Support awaits at 1.5825, followed by 1.5750. Strong resistance is at 1.60. For more, see the GBP/USD forecast.
