Forex Pros – Manufacturing activity in the U.K. declined broadly in line with expectations in February, easing down from the previous month’s record high, data showed on Tuesday.
In a report, market research group Markit said that its U.K. manufacturing PMI fell in line with expectations to a seasonally adjusted 61.5 in February, after rising to a record high 62.0 in January.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
According to the report, cost inflationary pressures continued to build, as input prices rose at a near record high rate.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “Purchasing managers reported raw materials costs were continuing to rise at historically high levels during February, leading many to pass on higher purchasing costs to their clients.”
Following the release of the data, the pound was up against the U.S. dollar, with GBP/USD gaining 0.29% to hit a 13-month high of 1.6307.
Meanwhile, European stock markets were up. The FTSE 100 climbed 0.46%, the EURO STOXX 50 gained 0.48%, France’s CAC 40 added 0.56%, and Germany’s DAX jumped 0.83%.
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