Analysts at TD Securities note that the UK manufacturing PMI was essentially unchanged in June at 54.4, a bit better than consensus expectations for a drop to 54.0.
Key Quotes
“Details showed that output slowed, new orders were up a touch, job creation was the only strong-ish point (best level in 3 months), and higher input costs were partially passed through into higher output costs.”
“Business optimism is still net positive but hit a 7-month low, “as some firms expressed concerns about input price increases, possible future trade tariffs, the exchange rate and Brexit uncertainty.” The exchange rate concerns were interesting, and likely linked to concerns about rising input costs given the fall in GBP the last few months. Overall, there’s nothing there that suggests a pick-up in manufacturing activity anytime soon, so no hint that the sector will resume last year’s stronger growth rates.”
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