UK manufacturing PMI tumbles, but labour market holding up well – TDS

FXStreet (Barcelona) - Previewing the UK Manufacturing PMI data release, the TD Securities Team, notes that although manufacturing fell to 51.9 in April, the rise in manufacturing employment indicates the labour market is holding up well.

Key Quotes

“The manufacturing PMI unexpectedly tumbled from a downwardly-revised 54.0 in March to only 51.9 in April (mkt 54.6), its lowest level in 7 months, and the details of the report weren’t any better than the headline.”

“We saw the slowest rate of output growth since Nov last year, and new orders slowed, particularly on the foreign side.”

“There was a lot more emphasis on the move lower in EURGBP hurting exporters' competitiveness.”

“By sector, we're seeing more of a split where manufacturers of consumer goods are still doing very well, but the intermediate goods sector slowing, and investment goods outright contracting.”

“Manufacturing employment expanded though for its 24th straight month, so the labour market is still holding up.”

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