UK: Disappointing manufacturing data - TDS

Analysts at TD Securities note that the UK’s January Manufacturing PMI disappointed as per their expectations, falling to 52.8, its second-weakest reading since mid-2016.

Key Quotes

“Strength was seen in the stockpiling index, which hit a record high as firms boost inventories ahead of Brexit, but production volumes hit a 2.5yr low and export orders stagnated.”

“Details show that consumer-facing firms fared well, while investment good producers saw outright declines, boding poorly for business investment in the near-term. Firms cited Brexit, the exchange rate, and signs of a European economic slowdown as factors weighing on sentiment.”