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Badly built manufacturing figures

Badly built manufacturing figures

Last week closed with the trends seen throughout the week continuing to play out on Friday. At the end of the day, the GBP closed lower again against both the EUR and the USD. However, the day presented no real shocks or particularly significant swings.

The manufacturing industry’s main trade association have pulled back their forecasts for manufacturing growth to just 1.5% now. To put this in perspective, the growth rate for all of 2014 was 2.9%, so just about double. While the UK’s manufacturing sector isn’t its biggest sector, this does put the Pound under pressure. This morning to follow this data figure, we saw the actual Markit Manufacturing Purchasing Managers Index (PMI). This has slowed down as well, with a figure that shows that the growth in the sector exists but is losing pace, which has weighed on the GBP.

Eurozone factory growth took a hit during May according to a survey of businesses. Factories have held their prices in May which will be disappointing news to the European Central Bank, which is trying desperately to restore inflation to targeted levels. This is really stemming from the core nations to the bloc, with France and Germany producing flimsy figures (49.4 and 51.1 respectively).

Today we have had, as mentioned, the UK Market Manufacturing PMI. We have also have seen the Eurozone figure too, which was less than forecast but the difference between expectation and what was actually produced was far closer than the UK’s figures. Later in the US personal spending figures will be released and, of course, lastly the US Manufacturing PMI.

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