UK manufacturing March PMI surprises negatively

The manufacturing sector activity in the UK economy deteriorated further in the month of March, surprising markets to the downside, the latest data from Markit revealed on Monday.

The final Purchasing Managers' Index (PMI) in the UK arrived at 54.2 points in March, as compared to a previous 54.6 reading. Markets had predicted a rise to 55.1.

Key Points:    

Output and new order growth slow, but remain above long-term trends

Price inflationary pressures remain elevated

Rob Dobson of Markit commented in the release, “The survey data suggest that the goods-producing sector made a solid contribution to GDP during the opening quarter of 2017. However, it’s clear that the expansion will be less than the buoyant 1.3% rise seen in the fourth quarter of last year.”