- Elizabeth Martins, HSBC
UK manufacturing activity rose to its highest l in more than two years, as the level new export orders surged on the weaker British Pound, a private survey revealed on Monday. According to Markit/CIPS, the Purchasing Managers' Index advanced to 55.4 in September, its highest level since June 2014, compared to the preceding month's 53.4 points, while market analysts anticipated a slight deceleration to 52.1 in the reported period. Back in July, the PMI dropped to 48.2 points amid Britain's decision to leave the European Union. September's growth was led by the consumer goods sector, whereas export orders jumped at the fastest pace since January 2014. While the weaker currency helped boost exports, it also led to higher imported raw material costs. Investors are likely to keep a close eye on UK's crucial services PMI data for September, scheduled for release on Wednesday. In the United Kingdom, the share of services in GDP is around 80%.
After the release, the British Pound rose slightly against other major currencies, trading at 1.2872 against the US Dollar, 0.8725 against the Euro, 130.57 against the Japanese Yen and 1.2503 against the Swiss Franc.
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