Webinar: Live coverage of March UK Manufacturing PMI
- Sterling gives back some of last week’s gains after weak manufacturing data.
- UK Manufacturing drops for the third month but remains above long-term average
The UK Markit Manufacturing PMI fell for the third consecutive month in March to 54.2 from a downwardly revised 54.5 in February, although the index remained above the long-term average of 51.6.
According to Markit, the manufacturing sector is now on course to contribute less to economic growth in the first quarter compared to the strong 1.3% increase in production seen in the final quarter of last year.
“However, thanks to a strong January, the first quarter could still see reasonable growth of approximately 0.6-7%.”
While today’s numbers are disappointing, the dominant UK services sector report is set for release on Wednesday and will show a clearer picture on the current state of the UK economy.
Chart: GBPUSD Five-Minute Timeframe (April 3, 2017).
--- Written by Nick Cawley, Analyst
To contact Nick, email him at Nicholas.firstname.lastname@example.org
Don't trade FX but want to learn more? Read the DailyFX Trading Guides
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.