British Manufacturing Recovers Nicely – Still in Contraction

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The British manufacturing sector has improved nicely. The purchasing managers’ index jumped to 49.6 points, much better than a drop to 47.4 that was expected.

This is still in contraction zone: under 50 points, for the third month in a row.

GBP/USD shrugs it off and remains around 1.5570, where it traded before the publication.

This is the first in a series of PMIs lined up this week. Tomorrow, construction PMI provides a trading opportunity. See how to trade this event with GBP/USD.

On Thursday, Services PMI is released. Recent global PMI figures came out better than expected: China and India saw their manufacturing PMIs rise above 50 points in December, returning to growth. Later in the day, this figure will be released in the US.

Britain faces a tough year as austerity measures still weigh on the economy, as well as the situation in the euro-zone.

For more on the pound, see the GBP/USD forecast.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.