UK & US Manufacturing Data

US data

Reports show that US manufacturing data came in better-than-expected for June lifting the DOW to a new intra-day high. Manufacturing PMI’s (Purchasing Managers’ Index) – are accepted as a good gauge to judge economic growth. So the US, in general, surges on. Presumably, if this improvement is maintained, it will make it easier for the US to raise interest rates again. Although it is not the only deciding factor.

UK data

On the other-hand, reports show that UK data came in far weaker. UK factory output growth slowed in June – a three month low. This data suggests that export orders remained disappointing despite the benefits and boost of weak sterling exchange rate.

Two very contrasting sets of data to think about. What happens when sterling recovers lost ground and interest rates begin to increase – neither of which can be that far away.