UK Manufacturing PMI Lower than Expectations at 48.4, EZ PMI Rises Slightly to 46.1, Euro Trades Stronger Against the Sterling - 1.10.2012
UK Manufacturing Purchasing Manager Index decreased to 48.4 points in September from 49.5 points in August according to the Chartered Institute of Purchasing and Supply. Economists were expecting to remain the same at 49.5 points however the release was disappointing. The UK CIPS PMI showed that in September manager’s expectations decreased slightly for material purchases and that consequently could set pressure on the economic activity. Moreover the Euro-zone Purchasing Manager Index rose slightly to 46.1 points in September from 46.0 points in August however remains below the 50 mark, signaling that the manufacturing sector in euro area contracted in the last month according to the Markit Economics. The Euro against the British pound is gaining ground today, after the release of the UK and EZ PMI data jumped from 0.7966 to 0.7979, in other words the currency pair gained approximately 0.16%.