Manufacturing Production (UK)
UK Manufacturing Expected to Soften
Starts Saturday, August 18, 2018 at 04:48
Updated Wednesday, August 1, 2018
The UK manufacturing PMI index took a bearish turn in May as it fell below 54 PMI points for the first time in years. It climbed back up, posting 54.4 points last month, but this sector is expected to soften again this month.Although, this is not the most important sector of the UK economy, it is a leading indicator of the broader economy. Managers of manufacturing firms hold the most current and relevant insight of the economy, so an increase on the manufacturing activity, means that the other sectors of the economy are likely to improve in the coming months.We cover calendar events live here at FxLeaders, so stay tuned to follow live comments on the report and the effect it has on the GBP pairs.
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About Manufacturing Production (UK)
Released by the National Statistics Bureau, Manufacturing Production is an aggregate measure of the U.K.’s industrial output. It is developed for month-over-month and year-over-year comparison, specifically addressing the relative strength of U.K manufacturing.The manufacturing sector represents 12-15% of the total GDP in the U.K. Being a top 10 global exporter, items such as pharmaceuticals, cars, beverages, and appliances are primary vehicles of foreign trade.Manufacturing Production is viewed by traders and investors to be a leading indicator of the U.K.’s short-term economic prowess. A high reading is perceived to be bullish toward the GBP, while a low reading is typically viewed as bearish. Volatility levels for the GBP may increase upon its public release, but Manufacturing Production is not a primary economic indicator for the U.K.