UK manufacturing PMI rebounds sharply to 55.1 in July

The manufacturing sector activity in the UK economy staged a solid comeback from 3-month lows in the month of July, surprising markets to the upside, the latest data from Markit revealed on Tuesday.

The manufacturing Purchasing Managers' Index (PMI) in the UK arrived at 55.1 points in July, as compared to a previous 54.3 reading. Markets had predicted the PMI to remain steady at 54.3.

Key Points:    

Solid new order intakes boosted by strong export performance  

Job creation among best recorded in past three years

Rob Dobson of Markit commented in the release, “UK manufacturing started the third quarter on a solid footing. The headline PMI signalled a growth acceleration for the first time in three months during July, as new order intakes were boosted by a near survey-record increase in new export business. Although the exchange rate remains a key driver of export growth, manufacturers also benefitted from stronger economic growth in key markets in the euro area, North America and Asia-Pacific regions.”