X
<

What October Manufacturing Tells Us about Developed Markets

PART:
1 2 3 4 5 6 7 8 9 10 11 12
Part 8
What October Manufacturing Tells Us about Developed Markets PART 8 OF 12

What Does the UK’s Manufacturing PMI Tell Us about Its Economy?

UK’s manufacturing PMI in October

The UK’s manufacturing PMI (purchasing managers’ index) stood at 56.3 in October 2017, compared with 55.9 in September 2017, and beat the preliminary market expectation of 55.8.

What Does the UK’s Manufacturing PMI Tell Us about Its Economy?

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 October was mainly due to the following:

  • stronger improvement in production output and volumes in October
  • faster expansion of new orders and export orders in October
  • faster rising job creation in the manufacturing sector that month

Domestic market conditions improved in the UK in October 2017. After the huge ups and downs we’ve seen in economic activity in the past year, the economy is now showing signs of strength. Following the Brexit referendum, the UK’s business confidence index tumbled a bit, but these improvements in domestic economic conditions are a positive sign.

The improvement in export orders in the UK is mainly due to the rise in orders from the US (SPY) (QQQ), South America, and Australia. Input cost inflation also improved last month.

Performance of index and ETF

The iShares MSCI United Kingdom ETF (EWU), which tracks the performance of the United Kingdom, rose nearly 0.6% in October 2017. The UK’s FTSE 100 index rose 0.7% in October.

In the next part, we’ll analyze the performance of the US non-farm payroll in October 2017.

X

Please select a profession that best describes you: