UK Markit Sept mftg PMI reading now out 2 Oct
- 56.7 prev revised down from 56.9
- PMI input prices 70.4 vs 62.1 prev, 6 month high
Softer tones kicking the pound lower as algo get hold of the release.
In real terms the mftg sector is of little consequence to UK GDP but try telling that to the bots.
Note though the increasing input price pressure which will impact inflation.
What the price/market reaction does show so far this morning and on Friday is that the recent rate-hike hype-led demand is on the wane imho and I'm happy to be selling again as I was toward the end of last week and highlighted on these pages.
GBPUSD currently on session lows of 1.3306 bu demand notable around 1.3300. EURGBP up to test 0.8830 but decent supply there so this could be as key hold for the moment . If broken though expect some acceleration.
Say Markit :
- The UK manufacturing sector continued to expand at a solid clip during September, with production and new orders both rising at above long-run average rates.
- However, the latest survey signalled that cost inflationary pressures surged higher. This reflected a combination of rising commodity prices, the exchange rate and increased supply-chain pressures.
Full report here
UK mftg PMI mm
