UK Dec manufacturing PMI surprises positively, hits 30-month highs

The manufacturing sector activity in the UK economy surprised markets to the upside and jumped sharply in the month of December, hitting the highest levels in thirty months, the latest data from Markit revealed on Tuesday.

The final Purchasing Managers' Index (PMI) in the UK jumped to 56.1 points in Dec, as compared to a previously revised 53.6 reading. Markets had predicted a drop to 53.0.

Key Points:

Improved domestic and overseas demand boosts output and new order growth

Price pressures stay elevated but ease further from recent highs

Rob Dobson of Markit commented in the release, ““The UK manufacturing sector starts 2017 on a strong footing. The headline PMI hit a two-and-a half year high in December, with rates of expansion in output and new orders among the fastest seen during the survey’s 25-year history. “The boost to competitiveness from the weak exchange rate has undoubtedly been a key driver of the recent turnaround, while the domestic market has remained a strong contributor to new business wins.”