UK Final Manufacturing PMI beats estimates with 60.9 in April, GBP/USD stays below 1.3900

Dhwani Mehta FXStreet

The expansion of the UK manufacturing sector activity accelerated near to the highest pace on record last month, the final report from IHS Markit confirmed on Tuesday.

The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was revised higher to 60.9 in April versus 60.7 expected and 60.7 first estimate.

Key points

Production and new order growth strengthen.

Output prices rise at record pace.

Rob Dobson, Director at IHS Markit, commented on the survey

“Further loosening of COVID-19 restrictions at home and abroad led to another marked growth spurt at UK factories. The headline PMI rose to a near 27-year high, as output and new orders expanded at increased rates.”

“The outlook for the sector is also increasingly positive, with two-thirds of manufacturers expecting output to be higher in one year’s time. Export growth remains relatively subdued, however, as small manufacturers struggle to export.”

GBP/USD reaction

The GBP bulls struggle to take on the recovery towards 1.3900, despite the upbeat UK Final Manufacturing PMI.

The spot was last seen trading at 1.3880, down 0.22% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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