UK Manufacturing Price Pressures Ease

U.K. manufacturing growth slowed for a second month in February and price pressures cooled, a sign that the effects of the pound’s drop may be easing.

IHS Markit’s Purchasing Managers Index fell to 54.6 from a revised 55.7, above the 50-mark dividing expansion from contraction but below economists’ expectations for 55.8.

The pound’s fall since the U.K.’s June referendum on European Union membership has had mixed effects for manufacturing, making goods cheaper for overseas buyers while also boosting costs for producers. A gauge of input prices slipped from a record high last month.

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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam