UK manufacturing PMI unexpectedly rises in August, at 4-month highs

The manufacturing sector activity in the UK economy extended its rebound from 3-month lows into a second month in August, surprising markets to the upside, the latest data from Markit revealed on Friday.

The manufacturing Purchasing Managers' Index (PMI) in the UK arrived at 56.9 points in August, as compared to a previous 55.3 (revised higher from 55.1) reading. Markets had predicted the PMI to tick lower to 55.0

Key Points:    

Manufacturing PMI at four-month high of 56.9

Broad-based expansion seen across all product categories

Input price inflation accelerates for first time in seven months

Rob Dobson of Markit commented in the release, “The UK manufacturing sector continued to show signs of solid progress during the third quarter, with rates of expansion in output, new orders and employment all gathering pace in August. The key question is whether this positive start to the second half of the year can be sustained. This is looking increasingly likely during the near-term, given the breadth of the expansion.”