James Knightley, Senior Economist at ING, reviews UK’s manufacturing PMI release, and further adds that the manufacturing sector might make a stronger contribution to UK’s Q1 2015 GDP.
Key Quotes
“The UK’s manufacturing purchasing managers’ index rose to 53.0 in January from an upwardly revised 52.7 reading for December. This was modestly better than expected.”
“Encouragingly, both export orders and total orders improved while the lower energy story is helping to improve profit margins.”
“With the British Chambers of Commerce manufacturing survey also offering encouragement by bouncing strongly in the latest survey, we are optimistic that the sector will make a stronger contribution to GDP growth in 1Q15 than it did in 4Q14.”
“With the consumer sector supported by real wage increases and rising employment and with confidence back close to series highs, we anticipate that 1Q15 GDP growth will show an acceleration from the 0.5% QoQ rate recorded in the final three months of last year.”
Key Quotes
“The UK’s manufacturing purchasing managers’ index rose to 53.0 in January from an upwardly revised 52.7 reading for December. This was modestly better than expected.”
“Encouragingly, both export orders and total orders improved while the lower energy story is helping to improve profit margins.”
“With the British Chambers of Commerce manufacturing survey also offering encouragement by bouncing strongly in the latest survey, we are optimistic that the sector will make a stronger contribution to GDP growth in 1Q15 than it did in 4Q14.”
“With the consumer sector supported by real wage increases and rising employment and with confidence back close to series highs, we anticipate that 1Q15 GDP growth will show an acceleration from the 0.5% QoQ rate recorded in the final three months of last year.”
