GBP/USD battles 1.3100 after UK Final Manufacturing PMI misses estimates with 53.3 in July
|The UK manufacturing sector activity quickened its pace of expansion less-than-expected in the month of July, the final report from IHS Markit confirmed on Monday.
The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was revised lower to 53.3 in July versus 53.6 expected and 53.6 first readout.
Key points
Domestic new orders rise, but new export business falls.
Business sentiment rises to 28-month high.
Rob Dobson, Director at IHS Markit, commented on the survey
“The UK manufacturing sector started the third quarter on a much firmer footing, with output growth hitting a near three-year high and new orders rising for the first time in five months. The recovery strengthened as a loosening of lockdown restrictions allowed manufacturers to restart or raise production.”
“July also saw signs of furloughed employees returning to work and customers resuming spending. Business optimism also rose to its highest for over two years as companies grew more hopeful that the future has brightened.”
GBP/USD reaction
The GBP bulls fought back control and regained 1.3100 even though the UK Final Manufacturing PMI fell short of expectations.
The cable continues to trade choppy in a 50-pips range, with bias titled to the downside amid fresh UK lockdowns and ahead of the key Bank of England (BOE) monetary policy decision due this Thursday.
In the meantime, markets stay focussed on the US-UK post-Brexit transition trade talks scheduled later in the day.
GBP/USD levels to watch
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