It’s been a data rich day for Europe with manufacturing surging while UK factories grow at a slower pace. And nationwide house prices fall again.
Eurozone PMI has hit a 6 year high and job creation is now at its fastest in 20 years. The PMI reading came in at 57.0, up from 56.7 in April, thanks to faster growth in output and new orders. Germany was the highest with growth at a 73-month high while Greece posted a contraction.
Britain’s manufacturing PMI dipped to 56.7 in May from 57.3 in April. Last month’s PMI was the strongest reading in three years. The Markit survey found that the growth largely came from higher domestic demand rather than increased exports.
Despite this Sterling inches lower against the dollar and euro due to conflicting polls on next week's British UK elections. One poll of voting intentions pointed to a potential hung parliament while others suggest an increased Conservative majority of up to 12%. GBPUSD is 0.25%. Lower on the session at 1.28550.
