The UK industrial sector is growing once again. Markit's Manufacturing PMI beat expectations with 51.9 compared with 49.7 expected, a significant positive surprise. The Services PMI marginally missed expectations with a score of 53.3 points versus 53.4 expected.
GBP/USD has extended its gains, hitting a high of 1.2927 at the time of writing. The forward-looking gauges indicate an economic recovery in the first quarter of 2020 after stagnation in the fourth quarter of 2019.
UK Public Sector Net Borrowing stood at around -£10.5 billion in January compared with around -£12 projected.
Markit's Manufacturing Purchasing Managers' Index was expected to drop from 50 – the break-even level 0 to 49.7 points. The Services PMI was projected to slide from 53.9 to 53.4 points. Both indicators rose in January in response to better business sentiment after the elections. The landslide victory of Prime Minister Boris Johnson provided some clarity after substantial Brexit turbulence.
GBP/USD advanced ahead of the publication and topped 1.29. The US dollar is taking a breather from its gains.
Coronavirus headlines continue worrying investors all over the world.
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