UK manufacturing PMI a tad weaker in Jan, but meets estimates

The manufacturing sector activity in the UK economy came in line with expectations and eased slightly in January, but kicked-off 2017 on a stronger note, the latest data from Markit revealed on Wednesday.

The final Purchasing Managers' Index (PMI) in the UK arrived at 55.9 points in Jan, as compared to a previously revised 56.1 reading. Markets had predicted a drop to 55.9.

Key Points:    

UK Manufacturing PMI at 55.9 in January  

Output growth at 32-month high

Purchase price inflation at new survey record

Rob Dobson of Markit commented in the release, “UK manufacturers have reported a bumper start to 2017, but are also seeing prices rise at an unprecedented rate. Factory output growth accelerated to a 32-month high in January, as solid domestic demand continued to drive production volumes higher. There were signs that the boost to export orders from the weak exchange rate was waning, as growth of new business from abroad slowed sharply.”