The pound has hit its highest level against the US dollar for nearly six years after a survey suggested the UK’s manufacturing sector grew at its fastest pace for seven months in June.
The latest Markit/CIPS purchasing managers’ index (PMI) for the sector was 57.5, up from 57.0 in May. A reading above 50 indicates expansion.
Survey compiler Markit said the sector continued to “flourish”.
The pound rose to $1.7145 on growing expectations of a rate rise this year.
The survey results add to signs that the UK’s economic recovery is becoming more balanced.