The preliminary Purchasing Managers’ Index (PMI) for the UK manufacturing sector rose in the first month of this yearDeltafx Admin 30 January 2023
The primary manufacturing purchasing managers’ index (PMI) measures the activity level of manufacturing purchasing managers. A value above 50 indicates an expansion in this sector. A value below 50 indicates contraction. Traders follow these surveys closely because purchasing managers typically have access to data on their company’s performance, which can be a leading indicator of the economy’s overall performance.
The release of a reading that is above expectations should be seen as positive/bullish for the pound, while the reporting of a reading that is below expectations should be seen as negative/bearish for the pound.
The preliminary U.K. manufacturing purchasing managers’ index was released at 9:30 a.m. on January 24 and came in at 46.7, 1.3 points above forecasts. Meanwhile, the value of the last period of this index was corrected and given as 45.3.
After the publication of this index, which was higher than expected, we saw a relative growth in the strength of the pound in the markets.