UK Final Manufacturing PMI meets estimates with 50.1 in June, Cable keeps 1.2400

Dhwani Mehta FXStreet

The UK manufacturing sector activity returned to expansion in the month of June, the final report from IHS Markit confirmed this Wednesday.

The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was left unrevised to 50.1 in June versus 50.1 expected.

Key points

Output edges higher and business optimism rises.

Employment falls for fifth successive month.

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

“June completed a marked turnaround in momentum in UK manufacturing, as the sector switched from April's record contraction back to stabilization in the space of two months. Output edged higher and domestic demand firmed as lockdown restrictions loosened, factories restarted and staff returned to work. Business optimism also recovered to a 21-month high.“

“The planned loosening in COVID-19 restrictions on the 4th July should aid further gains in the coming months. Although the trend in new export business remains weak, that should also strengthen as global lockdowns and transport constraints ease further.”

FX implications

The GBP bulls retain control following the UK Manufacturing PMI for June, as GBP/USD hovers above 1.2400.

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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