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August UK PMI Manufacturing Index Strengthens To 4-Month High Of 56.9


The PMI reading, given between 0-100, measures activity in the sector - anything above 50 signals growth, while anything below means contraction. That echoed similarly robust official data on Thursday suggesting the industrial sector is continuing to prosper from a year-long, government-led building boom.

"Indeed, investment growth has cooled recently and we anticipate a further slowdown as the impact of tighter monetary conditions continue to feed through".

The strongest euro exchange rate in two and a half years did little to dent demand for French-made goods as the flow of new orders and backlogs of work grew, the survey showed.

Other Asian electronics producers were also still riding high.

"With the eurozone PMI hovering at a seventy four month high and sterling hitting eight-year lows last month, the buoyant demand picture seen across manufacturing supply chains is not surprising". South Korea is the first among major exporting countries to publish its monthly trade figures. The move has slowed down India's business activity as they suffered from a severe cash squeeze. The seasonally adjusted Purchasing Managers' Index (PMI) - a composite indicator created to provide a single-figure snapshot of operating conditions in the manufacturing economy - registered 51.6 in August, up from 51.1 in July to signal an improvement in overall operating conditions.

The rebound suggests that India's economic growth rate, which unexpectedly slipped to three-year low of 5.7 percent in the April-June quarter from a year ago, may also improve in the current quarter.

The stronger pulse in China's industrial heartland has flowed through to commodity prices.

"All five of the PMI components - output, new orders, employment, suppliers' delivery times and stocks of purchases - were consistent with a stronger performance for the manufacturing industry during August", a statement from IHS Markit said.

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