UK manufacturing PMI makes it two on the trot with another big beat in December 2018

December 2018 UK Markit/CIPS manufacturing PMI 2 January 2019

Manufacturing PMI 54.2 vs 52.5 exp. Prior 53.1
New order and new export order inflows strengthen
Stocks of purchases and finished goods rise sharply

A second strong beat on the spin but Markit says that stockpiling is behind it so we could see a fall back over the next few months.

“December saw the UK PMI rise to a six-month high, following short-term boosts to inventory holdings and inflows of new business as companies stepped up their preparations for a potentially disruptive Brexit. “Stocks of purchases and finished goods both rose at near survey-record rates, while stock-piling by customers at home and abroad took new orders growth to a ten-month high. Any positive impact on the PMI is likely to be short-lived, however, as any gains in the near-term are reversed later in 2019 when safety stocks are eroded or become obsolete.” says Markit’s Rob Dobson

GBPUSD was trading around 1.2690 and has bounced to 1.2715.