UK Manufacturing PMI Disappoints

Friday, 01 April 2011 06:49

March’s Purchasing Managers Index, used as a leading indicator of UK’s growth rate, fell short of estimates on Friday. The particularly low number casts new doubts about a potential Bank of England rate hike and questions the country’s first quarter growth rate.

UK’s Manufacturing PMI fell more than three points to 57.1, far below the expected 60.7. March’s PMI is the lowest since October 2010.

Coupled with increasing inflationary pressures, the disappointing PMI complicates the Bank of England’s decision to raise its interest rate and prevent over-inflation.

Shortly after the data release, the GBP/USD triggered a new low for the week at 1.6000. But it then rebound strongly up to 1.6050, waiting for the US employment data.

Meanwhile, the Swiss PMI came in slightly below expectations at 59.3, but the high index still presents a positive economical outlook in Switzerland.