Strong UK PMI numbers lend further support to earlier breach of BoE unemployment threshold

FXstreet.com (London) - Sterling has been given further support by strong manufacturing Purchasing Managers Index numbers. November UK manufacturing purchasing managers’ index numbers came in at 58.4, busting the 56.0 consensus and the highest print since February 2011. Additionally, October’s number was revised up from 56.5 to 56.0.

Particularly bullish was the employment component, up to 54.5 from 51.9, continuing to add support to expectations that the unemployment rate will fall below 7 percent in the third quarter 2014 – below the threshold at which the Bank of England will consider hiking rates. The strong employment numbers combined with robust orders from the Eurozone suggest that there may be some potential for upside in wages – one of the few dark clouds on the horizon of the UK economy as real wages remain in decline.

GBP/USD is at USD1.6413, up 0.22 percent.