UK’s Manufacturing PMI at 3-Year High: Is Brexit Fear Overdone?
UK’s manufacturing PMI
The United Kingdom Manufacturing PMI (Purchasing Managers’ Index) improved in April 2017, hitting a three-year high. It stood at 57.3 in April compared to 54.2 in March. It was above the market expectation of 54.0.
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Improvement in the United Kingdom (EWU) Manufacturing PMI is mainly due to expansion in production activity. New orders and export orders rose at a faster pace in April, and domestic and international (ACWI) (VT) demand also improved. Stronger export demand improved production volumes.
Investor confidence is also improving gradually. In June 2016, the business climate in the United Kingdom took a huge hit after the Brexit vote. But now we’re seeing a gradual improvement in domestic demand with decent economic growth in the last two quarters of 2016. The United Kingdom could still face economic challenges as it negotiates with the Eurozone (IEV) (EZU).
In the next part of this series, we’ll look at the performance of the US non-farm payroll in April 2017.