UK manufacturing PMI surprises positively in Sept, highest since mid-2014

The manufacturing sector activity in the UK economy surprised the markets to the upside in the month of September, extending further into the expansion territory, as Brexit-related concerns appear to have taken a back-seat last month.

The final Purchasing Managers' Index (PMI) in the UK jumped to 55.4 points in Sept, as compared to a 53.3 reading booked in Aug. Markets had predicted a drop to 52.1.

Key Details:

New orders rose to 56.8 vs 55.0 prior

Export orders jumped 56.2 vs 55.0 prior, hitting the highest since levels since Jan 2014

Rob Dobson of Markit commented in the release, “September saw the UK Manufacturing PMI rise to its highest level since mid-2014, recovering further from its EU referendum inspired low in July. The rebound over the past two months has been encouragingly strong, and puts the sector on course to provide a further positive contribution to GDP in the third quarter.”

“The weak sterling exchange rate remained the prime growth engine, driving higher new orders from Asia, Europe, the USA and a number of emerging markets. The domestic market is also still supportive of growth, especially for consumer goods.”