UK PMI Manfacturing Above Expectations but Falls from Previous Month
THE TAKEAWAY: UK PMI manufacturing shrinks at the fastest pace since June 2009 -> economic growth remains primary concern -> Cable consolidates two-day winning streak against the Buck
Data from the UK today showed November PMI weakening at its fastest rate since 2009, despite avoiding an even larger drop predicted by economists. Manufacturing came in at 47.6 versus the 47.0 predicted by economists. Last month’s number was 47.8. The data came after reports showed French manufacturing shrinking from expectations and German manufacturing staying put.
UK manufacturing is expected to remain soft over the coming months given the weak growth projections for the UK and Eurozone. The market has recently been struggling with inflation and reduced government stimulus which have cut consumer confidence and economic growth.
The Pound is strong on the day against the Dollar, but shows losses against the Euro as the single currency comes off a two day upward move. Currencies are expected to resume prior weakness against the Dollar in the coming days.
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