Investing.com - Manufacturing activity in the U.K. make a strong start to 2017, bolstering confidence over the British economy, industry data showed on Wednesday.
In a report, market research group Markit said that its U.K. manufacturing PMI slipped to a seasonally adjusted 55.9 last month from a reading of 56.1 in December.
The reading was in line with the consensus forecast.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Markit indicated that output rose at the fastest rate since May 2014 as new order intakes expanded at a robust pace.
However, the research group also noted that purchase price inflation hit a new survey record, advancing at the fastest pace in the quarter-century history of the report.
“The question is whether increased cost inflationary pressure will act as a drag on manufacturing growth going forward,” Rob Dobson, senior economist at survey compiler Markit, said.
Dobson added that “all signs are pointing to a solid contribution to U.K. growth from manufacturing during the opening quarter of 2017."
In reaction to the data, sterling hit intraday highs on Wednesday.