A miss on UK data: manufacturing PMI came out at 51.5 points, below expectations. The manufacturing sector is always the weaker link in the UK economy, and now it looks even weaker.
GBP/USD slipped to 1.5335 before somewhat bouncing back but then extending its falls.
Other figures in the UK also came out just below predictions: consumer credit hit 1.173 billion pounds, just below predictions of 1.2 billion. Mortgage lending came out at 2.709 billion, under 2.8 billion predicted. The only positive number is M4 money supply, that rose by 1% instead of 0.2% expected.
Markit’s purchasing managers’ index for the manufacturing sector was expected to stand at 52 points in August, very similar to July’s 51.9 points.
The pound was weakening towards the publication, sliding to 1.5355.
This is the first of a series of 3 PMIs with construction coming up tomorrow and services on Thursday. The pound has been suffering lately due to global uncertainty about China and local uncertainty about the timing of the first rate hike.
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