Friday's manufacturing PMI figure saw a modest improvement in the performance of the sector. The seasonally adjusted Markit/CIPS Purchasing Managers’ Index (PMI) posted 52.1, up from a revised reading of 50.4 in May, its highest level since January.
Whilst the figure was positive it should be noted that the data collection window for this month’s survey was between the 13th and 27th June. Almost all of the responses included in the final index readings were received prior to the end of 23rd June (the day of the UK’s EU referendum).
June data signalled a faster rate of increase in UK manufacturing production, underpinned by a solid acceleration in inflows of new work and an increase of exports.
Where an increase in new work from overseas was recorded, companies linked this to higher sales to the USA, mainland Europe (especially Germany, Italy, Spain and the Benelux nations) and East Asia.
The Institute of Supply Managers index climbed for a second straight month in June to its highest level since February 2015, putting the sector on stable footing for the second half of the year.
The indexes for both new orders and production rose in June, and both have been expanding for the past six months. Meanwhile, the exports index hit its highest level since November 2014. But some economists said the Brexit vote could hamper the sector going forward.
09:30 - GBP - Construction PMI is forecast to fall to 50.5 from 51.2