Sterling finds strength from higher UK manufacturing growth

first_img The pound was up 0.1 per cent against the US dollar at 1.304 and close to 0.4 per cent compared to the euro at 1.125.Read more: British manufacturing output growth weakens as exports slowManufacturing posted a “mild” improvement in output at the end of the third quarter, according to the closely-followed IHS Markit/CIPS Purchasing Managers’ Index (PMI) figures, released today.The sector posted 53.8 for September, up from 53.0 in August, marking its 26th consecutive month above the neutral 50 mark.Companies credited the rate of growth – which hit a four-month high – to a solid increase in new orders from domestic and export markets, a refresh of inventories and a renewed focus on clearing backlogs of work, which fell for the ninth month in a row. Read more: Business leaders lose confidence in government striking good Brexit deal“Headcounts fell at larger companies for a second successive month. On the price front, both output charges and input costs rose at faster rates in September, which may exert further upward pressure on consumer prices in future.”Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said the latest figures reflected European uncertainty over supply chains depending on what kind of Brexit deal the UK secures.”Uncertainty about the UK’s future relationship with the EU also likely has contributed to a slowdown in demand,” he said. “French manufacturers, for instance, are more likely to switch to sourcing components from other EU countries, given the risk that supply chains across the Channel could break down after Brexit. It’s hard to see growth in manufacturing output recovering until the risk of a no-deal Brexit has been extinguished.” Joe Curtis Sterling finds strength from higher UK manufacturing growth Sterling climbed on the back of stronger UK manufacturing growth this morning. More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comWhy people are finding dryer sheets in their mailboxesnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.com whatsapp Demand for UK exports felt a small recovery after contracting in August, with manufacturers experiencing more demand from the US, Europe, Russia, Scandinavia and Canada.It meant manufacturing firms also hired more staff, with jobs growth at small and medium companies offsetting cuts at larger scale businesses.However, Rob Dobson, director at IHS Markit, said that higher business confidence only signalled cause for “short-term optimism”, with the sector facing many challenges.”Conditions in manufacturing are still relatively lacklustre overall,” he said, warning that output is growing “at only a moderate pace”. He warned that while total exports grew, foreign companies appear to be sourcing fewer components from the UK.“Many UK manufacturers also noted that the backdrop of Brexit and a volatile exchange rate were making any forecasting activity increasingly difficult, with uncertainty adding to reluctance to hire,” he added. Monday 1 October 2018 10:07 am whatsapp Share Tags: Brexitlast_img

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