Investing.com – Manufacturing activity in the U.K. increased unexpectedly in January, rising to a record high, data showed on Tuesday.
In a report, market research group Markit said that its U.K. manufacturing PMI rose to a seasonally adjusted 62.0 in January, after rising to 58.7 in December, whose figure was revised up from 58.3.
Analysts had expected the manufacturing PMI to fall to 58.1 in January.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “UK manufacturing steamed ahead in January as the sector continues to expand quicker than even the most optimistic amongst us could have predicted.”
He added, “Manufacturers will be watching intently to see how the Government and Bank of England move to tackle the issue of rising inflation, and hoping for stimulation to encourage continued growth in a sector which is currently leading the way towards UK recovery.”
Following the release of the data, the pound was up against the U.S. dollar, with GBP/USD surging 0.67% to hit a three-month high of 1.6123.
Meanwhile, European stock markets were up. The FTSE 100 climbed 0.31%, the EURO STOXX 50 gained 0.45%, France’s CAC 40 added 0.44%, and Germany's DAX was up 0.58%.
In a report, market research group Markit said that its U.K. manufacturing PMI rose to a seasonally adjusted 62.0 in January, after rising to 58.7 in December, whose figure was revised up from 58.3.
Analysts had expected the manufacturing PMI to fall to 58.1 in January.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “UK manufacturing steamed ahead in January as the sector continues to expand quicker than even the most optimistic amongst us could have predicted.”
He added, “Manufacturers will be watching intently to see how the Government and Bank of England move to tackle the issue of rising inflation, and hoping for stimulation to encourage continued growth in a sector which is currently leading the way towards UK recovery.”
Following the release of the data, the pound was up against the U.S. dollar, with GBP/USD surging 0.67% to hit a three-month high of 1.6123.
Meanwhile, European stock markets were up. The FTSE 100 climbed 0.31%, the EURO STOXX 50 gained 0.45%, France’s CAC 40 added 0.44%, and Germany's DAX was up 0.58%.