GBP:
Factory output growth in the UK  reached a 14 month low due to
geopolitical risks increasing. The UK manufacturing PMI declined to 52.5
in August a strong decline on last month’s 54.8, and the weakest growth
since June 2013. Geopolitical issues in the Ukraine are negatively
impacting growth in the factory sector after positive performance through
2013
 
It has been mentioned that Putin has impacted the manufacturing sector.

GBP:
Factory output growth in the UK  reached a 14 month low due to
geopolitical risks increasing. The UK manufacturing PMI declined to 52.5
in August a strong decline on last month’s 54.8, and the weakest growth
since June 2013. Geopolitical issues in the Ukraine are negatively
impacting growth in the factory sector after positive performance through
2013
 
It has been mentioned that Putin has impacted the manufacturing sector.
Russia’s escalation of the conflict in Ukraine has had an adverse impact on
the  manufacturing sector. It is expected that if the political
situation gets worse in the Ukraine manufacturing data will continue to
decline.
 
Also in the UK, the pound gained for a fourth day against the EUR and USD
with data showing U.K. mortgage approvals in July exceeded analyst
estimates, showing the housing market is growing regardless of the stricter
rules around lending.
 
EUR:
In Spain its factory sector recorded its ninth consecutive
expansion with the index showing growth of 52.8, this is however
slightly lower than last months  53.9 in July. But the expansion
is still reasonably acceptable due to weakness in other parts of the Eurozone,
regardless of the fact it is slower than expected.
 
Another positive factor in Spain is that firms reported they hired more staff
to deal with rising demand. But the flip side to this is some companies also
reported that they cut prices to generate more sales.
 
Germany demonstrated that its economy shrank by 0.2% in the second quarter of
2014, with figures also showing that investment in the construction sector
shrank by 4.2%.
 
In France, data showed that factories declined at the fastest rate in 13
months. The French manufacturing PMI fell to just 46.9, which is significantly
lower than the 50 point mark that separates expansion from contraction. New
orders and employment levels both declined, demonstrating weakness within the
French manufacturing sector.
 
Key Announcements:
 
09.30      GBP – PMI Construction (Aug)
expected to fall from 62.4 to 61.4.
 
15:00      USD – ISM manufacturing
(Aug) expected to fall from 57.1 to 56.8

*All times shown are BST

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