What Helped the UK’s Manufacturing PMI Rise in July?
UK’s manufacturing PMI in July
According to a report by Markit Economics, the final UK manufacturing PMI (purchasing managers’ index) stood at 55.1 in July 2017 as compared to 54.2 in June. The PMI figure beat the market expectations of 54.4.
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The solid performance of the UK’s manufacturing PMI in July was mainly due to the following:
- Production volume and output rose at a stronger pace.
- New business orders and export orders also grew at a higher rate.
- Employment remained high, and the business climate also remained positive.
UK’s election outcome
In June 2017, the UK’s (EWU) general election outcome created a swing in its political environment. The instability in the political environment was the primary factor that hampered consumer confidence and dragged down domestic demand during the month.
However, in July, the situation improved a bit. The rise in consumer activity helped the UK’s manufacturing. Specifically, stronger domestic demand boosted economic activity during the month. If the UK continues its strong performance in the near future, then we might see reduced uncertainty due to Britain’s exit from the European Union (VGK) (IEV) (EZU).
In the next part of this series, we’ll analyze Japan’s manufacturing PMI in July 2017.