POUND LIVE: Pound rises as bumper manufacturing hits four-month high in Brexit boost

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pound to euro rate september 2017GETTY

The strike rose against the euro amid the latest manufacturing figures

First-class strengthened to 1.0861 against the euro, after manufacturing data flaunted August had been another positive month for Britain’s factories.

Achievement in the respected manufacturing Purchasing Managers Index (PMI) scored 56.9, with a impute to above 50 indicating growth.

Production jumped at the fastest compute in seven months, as both domestic as export demand were potent, according to the report.

The rate of foreign demand is at close to record destroys, the PMI report showed.

Furthermore, job creation in the sector was recorded for the 13th straight month, with the type of increase now at the highest level since June 2014.

The news helped get ready for a boost for the pound against the euro, after sterling has stuggled against the eurozone currency in late weeks.

Rob Dobson, director at IHS Markit, which compiles the survey, said: “The UK contriving sector continued to show signs of solid progress during the third ninety days, with rates of expansion in output, new orders and employment all gathering speed in August.

“There are increasing signs of supply-side issues leading to raw concrete and staff shortages, which could become a constraint on output vegetation going forward, while also leading to higher costs.

«How, at the moment, the survey data suggest that the manufacturing economy carry ons in good health despite Brexit uncertainty, and should help backup on-going growth in the economy in the third quarter, which will add kindling to hawkish policymakers’ calls for higher interest rates.”

 

The performance in the manufacturing sector could inflation the chances of interest rates rising and the pound rising if economy progress stays strong.

Andrew Wishart, UK economist at Capital Economics, state: «The manufacturing PMI has pointed to much stronger manufacturing output growth than has been publicized in the hard data for some time now.

«Manufacturing contracted by 0.6 per cent in Q2 in spite of the output balance of the PMI pointing to an expansion of around 0.5 per cent.

«But the enquiry may have under-represented the weakness in volatile pharmaceutical output – which seems able to rebound in Q3.

«What’s more, the PMI survey isn’t an outlier, with the CIPS Industrial Looks survey pointing to strong rates of growth too.

«As such, we expect the licensed figures to start to reflect the surveys’ optimism ahead.

«As a result, we require the manufacturing sector to help overall GDP growth to accelerate in the second half of 2017.»

Various to follow…

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