The UK manufacturing PMI for July beat expectations in rising to a headline reading of 55.1, up from 54.2 (which was revised down from 54.3). The median forecast had been for a more modest rebound to 54.5. The details of the survey revealed a solid export performance, with export orders at the second highest on record in the data series, while job creation was nearly the best seen over the last three years. The improvement in the rate of expansion of overall new orders, however, was among the slowest registered over the last year. Cost pressures eased to the slowest pace in over a year, though still remain relatively high due to higher material prices and exchange rate weakness. The survey also found a slight increase in inventory holdings. Overall, an encouraging report, though investors will be looking to the release of the services PMI on Thursday before drawing conclusions, with the sector accounting for about 80% of UK GDP. Cable is in a strong uptrend and remains positive as sentiment hangs on the greenback, the data has helped the pair north of 1.3200.
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