PMI showed a reading of 57.5 last month, its second highest in 40 months and
the 16th successive month that manufacturing output has risen.
Dobson, Senior Economist at Markit, said: “UK manufacturing continued to
flourish in June, rounding off one of the best quarters for the sector over the
past two decades. With levels of production surging higher, and order books
swollen by a further upswing in demand from both domestic and overseas clients,
job creation accelerated to its highest for over three years.”
manufacturing production is likely to have expanded in the second quarter at a
pace above the 1.5 percent registered in the first quarter, he added, which
brings output that bit closer to pre-crisis levels.
regional US factory data had disappointed as the Chicago purchasing managers’
index slid to 62.6 this month from 65.5 in May. It came in below expectations
and fuelled speculations that the June non-farm payrolls figures will come in
effect on the currency markets was to drive sterling to its highest in six
years against the US dollar.
surged beyond the 1.71 mark as cable tapped on a level not seen since the
financial crisis of 2008. Sterling has gained ten per cent in the last 12
months, the strongest performer among the majors, as investors eye a rate hike
from the Bank of England.
Staines, head of trading at the ECU Group, believes the UK manufacturing PMI is
a sign of deeper strength.
manufacturing data highlights that momentum is far from waning in the UK and,
to paraphrase the Bank of England governor Mark Carney, as the UK moves from
recovery to expansion, the drivers of growth are increasingly moving away from
consumption to investment and, ultimately, productivity growth,” he says.
remains a sticking point for Mr. Carney and so far he’s been at a loss to
explain why it’s failed to improve.
But more good news came as official
figures showed UK labour productivity improved, albeit marginally. Output per
hour grew by 0.2 percent in the first quarter in service industries, and by 0.5
percent in production industries. Manufacturing unit wage costs fell by 1.8 percent
in the first quarter of 2014 and were 0.3 percent lower than a year earlier;
representing the first quarter since Q1 2012 where there has been a
year-on-year fall in manufacturing unit wage costs.