Following a Sterling rally last week, particularly against the USD, the Pound has dropped back off following Monday’s dismal UK manufacturing PMI data.
Manufacturing activity in the UK came in considerably worse than expectation with June’s figure at 54.3 as compared to a previous figure of 56.3.
This figure, showing expansion, demonstrates that the manufacturing sector was largely unaffected by the uncertainty surrounding the UK General Election and the start of the Brexit process. However, crucially, the rate of expansion slowed again which remains a cause for concern in the long term.
To further compound this point construction PMI released today stalled in June and also missed expectations. This reflects weaker rises in commercial building and civil engineering projects.