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?

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.

Latest articles

On Wednesday, United Rentals is scheduled to report its second-quarter results after the market closes. The stock beat analysts' estimates in 12 of the last 13 quarters.

16 Jul

Q2 Earnings Were a Mixed Bag for J.B. Hunt

WRITTEN BY Anirudha Bhagat

J.B. Hunt reported mixed Q2 earnings, as its revenues grew YoY but earnings declined.

16 Jul

What to Expect From Nucor’s Q2 Earnings This Week

WRITTEN BY Mohit Oberoi, CFA

Nucor is scheduled to release its second-quarter earnings on Thursday. The company has seen an upwards price action of 7.4% year-to-date.

16 Jul

Will HollyFrontier's Q2 Results Improve?

WRITTEN BY Maitali Ramkumar

HollyFrontier (HFC) is expected to release its second-quarter results on August 1.

On Monday, Citigroup downgraded Tiffany (TIF) stock to “neutral” from “buy” and reduced its target price to $100 from $115 per share.