Latest data released by Markit - 1 February 2019
- Prior 54.2
A weaker-than-expected reading but stockpiling of purchases continues ahead of Brexit uncertainty, with purchase of stock volumes hitting the highest on record from 54.2 in December to 56.3 in January. Once again, it must be reiterated that this is a temporary boost factor which masks the reality of the print here i.e. it should be weaker than what is showing.
Looking at the report, Markit notes that it sees a "clear risk" of a manufacturing sector recession in the UK economy. That basically sums up the real underlying trend in factory activity at the moment.
Cable holds steady at 1.3090 after falling to a low of 1.3077 earlier. EUR/GBP sits near the highs for the day at 0.8757 as the euro inches up a little on the session.