UK Final Manufacturing PMI beats estimates with 58.9 in March, GBP/USD tests 1.3800
|The UK manufacturing sector activity quickened its pace of expansion in the month of March, the final report from IHS Markit confirmed on Thursday.
The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was revised higher to 58.9 in March versus 57.9 expected and 57.9 first readout.
The figure hit the highest levels in over a decade amid the upward revision.
Key points
Business optimism at a seven-year high.
Supply-chain disruption and inflationary pressures build.
Rob Dobson, Director at IHS Markit, commented on the survey
“Signs of Spring have appeared in the UK manufacturing sector, with the PMI hitting its highest level in a decade. Growth of output, order books and employment all gathered momentum and optimism about the year ahead improved further.”
“The domestic market remained the prime source of new orders, as companies reported that the vaccine roll-out and clients’ preparations for the loosening of lockdown restrictions underpinned the expansion. Many expect this process to be supportive during the year ahead as well, raising business optimism and jobs growth to their highest levels for seven years.”
GBP/USD reaction
The GBP bulls are back in control, now cheering the upbeat UK Final Manufacturing PMI, as GBP/USD tests daily highs just shy of the 1.3800 level.
The spot was last seen trading at 1.3794, up 0.09% on the day.
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