January UKMarkit/CIPS manufacturing PMI 56.7 vs 57.0 exp

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  • Prior 57.3. Revised to 57.2
  • New export orders 57.5 vs 54.4 in Dec, highest since Feb 2011
  • Output 59.4 vs 60.4 prior

Cable taking a trip down to 1.6370 from 1.6411.

A miss on expectations and a slight lower revision but good numbers posted for orders from abroad so it’s a bit of a mixed report. Exports increased broadly to North America, Europe Asia, Brazil, Scandinavia and the Middle East.

Employment was up for the ninth straight month with large manufacturers picking up the slack although small and medium firms showed a fall.

UK Manufacturing PMI employment 03 02 2014

UK Manufacturing PMI employment 03 02 2014

David Noble at CIPS says;

“The continued improvement in global market conditions has ushered in a broad based and fully fledged recovery in manufacturing. Sustaining growth close to November’s near record numbers, the makers’ march continued in January 2014, embodied by ever faster rates of new business growth and ongoing increases in employment levels.

Whilst domestic demand continues to climb, it is the expansion overseas that promises continued growth. The illusive export market has long been heralded as the key to unlock UK economic growth and in manufacturing appears to be coming to fruition, with new business rates climbing fastest in nearly three years.

This has enabled firms large and small, across the sector, to invest in staff, marking the ninth
successive month on month increase in employment. The rate of growth in jobs has also remained close to November’s two and a half year high. Whilst costs climbed yet again, firms were able to pass these on to customers, a further sign of bullishness across the sector.”


Author: Ryan Littlestone

Ryan Littlestone has been working in financial markets for more than 20 years. Wide-eyed, he stepped out of Bank station in London to join LME founding member Rudolf Wolff where he worked his way to the main order desk and brokered customer orders to the LME floor and across virtually every global market. An opportunity to help set up and run a new LIFFE floor operation saw him catch the trading bug and it wasn’t long before the pull of the pits was too great to refuse. He became a ‘local’ and has been trading his own account for more than 11 years.


All|British pound|Economic Data|Europe|Regions

Markit|UK economy|uk manufacturing pmi

Ryan Littlestone


  1. Someone big selling sterling large against Yen this morning, doing everything they can to knock sterling down… (that will keep the BoE happy)…

  2. My view: CB in the market selling sterling – and they might take a hit soon…

  3. That’s good DT as I fancy getting in EUR/GBP shorts up at 0.83 ;-)

  4. which CB you got in mind DT?

  5. @Ryan: :)
    @Mike: To be honest I don’t know, but I saw the same thing in the Euro last week (I thought it was the ECB via their proxies, but it turned out to be E European & Russian CBs). I was right on the CB, wrong on the name…

  6. And there goes the bids at 1.3650, that they were targeting… (they want to take out the Jan lows as I’m sure you’ve guessed by now)…

  7. That was of course meant to be 1.6350, NOT 1.3650 – LOL ! Fat-fingers…

  8. Noted DT.. thanks


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