- UK Manufacturing PMI Unchanged in June
UK manufacturing sector was steady in June according to the data released by IHS Markit on Monday.
The manufacturing Purchasing Managers Index expanded slightly to 54.4 from a downwardly revised 54.3 recorded in May, exceeding analysts’ expectation of 54.0 and sustained expansion above the 50 mark that separates growth from contraction.
However, optimism dipped to its lowest level this year as factory managers complained about rising costs, possible trade tariffs, exchange rate, and Brexit uncertainty. Suggesting weak long-term business confidence that may also hurt new business investment.
Data released last week showed the economic slowdown recorded in the first half of the year was less severe than previously estimated, but business survey painted a mixed picture of the second quarter as other factors like new investment and future prospect amid global trade war seems to have clouded business confidence.
The pound dipped against the US dollar to retest 1.3100 support level as projected in the forex weekly outlook. While a sustained break of 1.3100 may open up 1.2910 support level, the uncertainty surrounding the US dollar may stall downside movement.