UK manufacturing PMI eases in May, but betters expectations

The manufacturing sector activity in the UK economy stalled its rebound and eased slightly in the month of May, however, came in a tad better-than expectations, the latest data from Markit revealed on Thursday.

The manufacturing Purchasing Managers' Index (PMI) in the UK arrived at 56.7 points in May, as compared to a previous 57.3 reading. Markets had predicted a drop to 56.5.

Key Points:    

Output and new order growth remain solid

Rate of job creation at 35-month high

Rob Dobson of Markit commented in the release, “The strong PMI numbers suggest the manufacturing sector has gained growth momentum in the second quarter after the sluggish start of the year. The ongoing strength of the domestic market remains the main driver of the upturn. Growth of new export business played a lesser role in comparison, with the trend in foreign demand continuing to improve only in fits and starts, despite the assistance of a historically weak sterling exchange rate.”