A busy week ahead on the data front, with manufacturing PMIs out today, before the ONS releases production and trade data for May on Friday.
The manufacturing PMI came in at a healthy 56.7 in May, continuing the reassuring trend of expansion over the last 10 months. With global demand conditions remaining strong, as well as the sterling depreciation providing a supportive boost to exporters, we expect to see another strong reading this month. Encouragingly, it is not just the UK which is currently enjoying a sweet spot, with European PMIs across the continent all at high levels.
Index of Production
Manufacturing output expanded by 0.2% in April, giving us our first indication of the sector’s performance for the second quarter of the year. With key indicators continuing to point to manufacturing being in relatively good health, we expect to see production expand again this month. Keep an eye out for our blog on Friday where we will be analysing the data.
At the same time as the IoP, we’ll be getting the UK trade data for May. This has made for somewhat pleasant reading over the last few months, with manufacturers enjoying the two pronged benefit of a pick-up in demand in key export markets, as well as the more competitive exchange rate. Indeed manufacturing exports were up 8.4% in April compared to same month a year ago, and we see no reason why this trend should change.