November 2017 UK Markit/CIPS manufacturing PMI 1 December 2017

  • Prior 56.3. Revised to 56.6
  • New orders 60.9 vs 58.1 prior. Highest since Nov 2013
  • Markit says the data is consistent with manufacturing rising 2.0% q/q

On the face of it, it’s a super number but it’s not helping the pound out much. GBPUSD had dipped to 1.3477 and although we’re back to 1.3500, it’s not pushing on.

Other positives from the report;

  • Investnment goods new orders grow at the fastest pace since 1994
  • Input prices gain but sit just below the 7 month highs
  • Output prices are at 7 month highs

Rob Dobson at Markit says;

“UK manufacturing shifted up a gear in November, with growth of output, new orders and employment all gathering pace. On its current course, manufacturing production is rising at a quarterly
rate approaching 2%, providing a real boost to the pace of broader economic expansion. The breadth of the rebound is also positive, with growth strengthening across the consumer, intermediate and investment goods industries. Of real note was a surge in demand for UK investment goods, such as plant and machinery, with new orders for these products rising to the greatest extent in over two decades. This suggests that capital spending, especially in the domestic market, is showing signs of renewed vigour. On the price front, rates of inflation in input costs and output charges remained elevated. Manufacturers have seen supply-chain constraints and rising demand for raw materials overtake exchange rate effects as the primary motivator of price increases. The coming months should provide greater evidence on any impact that the recent interest rate increase from the Bank of England will have on reining in cost pressures.”


Ryan Littlestone

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