X
<

What September's Manufacturing Signals for Developed Markets

PART:
1 2 3 4 5 6 7 8 9
Part 8
What September's Manufacturing Signals for Developed Markets PART 8 OF 9

How Will Weaker UK Manufacturing Affect the Markets?

UK manufacturing PMI in September

The United Kingdom’s manufacturing PMI stood at 55.9 in September 2017, compared to 56.9 in the previous month. The PMI figure was below the preliminary market expectation of 56.4.

How Will Weaker UK Manufacturing Affect the Markets?

Interested in EWU? Don't miss the next report.

Receive e-mail alerts for new research on EWU

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

The stronger UK manufacturing PMI in September was mainly due to the following factors.

  • Production output and volume improved at a weaker rate in September 2017.
  • New orders and export orders expanded at a slower pace.
  • Job creation in the manufacturing sector also weakened.

Input cost inflation rose at a stronger rate in September, mainly due to rising commodity prices. New investment plans, new product launches, and expansion in existing projects showed some marginal improvement. Although the manufacturing PMI remained weaker, the outlook for this sector remained positive.

Domestic demand is gradually rising. Consumer spending has also been gradually improving. The Eurozone economy (VGK)(IEV) is also in a better state than it had been. The improving economic scenario is good for the market.

Performance of index and ETF

The iShares MSCI United Kingdom ETF (EWU) rose nearly 2.9% in September 2017. The UK’s FTSE 100 index fell marginally in September 2017.

In the next part of this series, we’ll analyze the indicators investors should watch this week.

X

Please select a profession that best describes you: