- Business activity in the UK manufacturing sector lost momentum in early March.
- GBP/USD continues to push lower towards 1.3150 after the data.
The UK manufacturing PMI decreased to 55.5 points in early March from the 58 seen in February, data released jointly by S&P Global and CIPS showed on Thursday. This digit did not meet the market expectation of 56.7.
On a positive note, Services PMI improved to 61 points from 60.5beating analysts’ estimate of 58.
Commenting on the data, “UK PMI surveys indicated a sustained robust pace of expansion in Marchas the reopening of the economy from COVID-19 containment measures helped offset headwinds from the Ukraine war, Brexit and rising prices,” said Chris Williamson, chief business economist at S&P Global.
“However, The outlook darkened as concerns about Russia’s invasion exacerbated existing concerns about rising prices, supply chains and slowing economic growth.Williamson added. “Business expectations are now at their lowest level for nearly a year and a half, pointing to a marked slowdown in the pace of economic growth in the coming months.”
market reaction
GBP/USD remains on the defensive after this report, shedding 0.3% on the day at 1.3165.
Source: Fx Street
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