{"id":38729,"date":"2020-01-23T22:51:54","date_gmt":"2020-01-23T11:51:54","guid":{"rendered":"https:\/\/www.icmarkets.com\/blog\/?p=38729"},"modified":"2020-01-24T15:08:59","modified_gmt":"2020-01-24T04:08:59","slug":"uk-flash-manufacturing-pmi-in-focus","status":"publish","type":"post","link":"https:\/\/icm-cn-asia.com\/blog\/uk-flash-manufacturing-pmi-in-focus\/","title":{"rendered":"UK Flash Manufacturing PMI in Focus"},"content":{"rendered":"

Release date: Friday 24th<\/sup> January at 09.30am GMT\/04.30am EST. <\/strong><\/h3>\n

Two variations of this account are released about a week apart. The Flash PMI release<\/strong>, source first reported in November 2019, is a forward-looking estimate<\/em> of a country’s manufacturing sector. It\u2019s there to provide an early indication of the Final PMI<\/strong> value, due on 3rd February. The flash release, given it is among the primary economic indicators released each month, is labelled a high-impacting event on most economic calendars. The flash release forms by way of a survey of approximately 650 purchasing managers, requested to rate the relative level of business conditions.<\/p>\n

A reading above 50.0 shows improving conditions, whereas moves south of 50.0 indicate a waning economy.<\/strong><\/p>\n

Friday brings with it flash Markit PMI metrics for January with services, manufacturing and composite readings all due for release. The Flash manufacturing PMI is expected to register 48.8, picking up from the 47.5 reading in December<\/strong>. The Flash Services PMI is set to report a 50.8 reading, over December\u2019s 50.0 value, while the Flash Composite PMI forecasts a 50.5 print, against December\u2019s 49.3 value.<\/p>\n

According to Markit Economics<\/p><\/blockquote>\n

\"\"<\/a><\/p>\n

The headline seasonally adjusted IHS Markit\/CIPS Purchasing Managers\u2019 Index (PMI) fell to 47.5 in December (a four-month low), the second weakest level for almost seven-and-a-half years (the PMI stood at 47.4 in August 2019). The PMI has also posted below the neutral mark of 50.0 in each of the past eight months.\u00a0<\/strong><\/p>\n

The downturn in the UK manufacturing sector deepened at the end of 2019, as output contracted at the fastest pace since July 2012. Production fell in response to declining intakes of new work from both domestic and overseas clients, while efforts to reduce Brexit safety stocks also stymied output volumes.<\/p>\n

UK flash PMI data to steer next Bank of England rate decision<\/p><\/blockquote>\n

IHS Markit<\/strong> noted any failure of the survey data to show a revival of economic growth at the start of the year is likely to trigger an imminent rate cut by the Bank of England when its Monetary Policy Committee next meets on 30th January<\/u><\/strong>. Policy had been kept on hold during Brexit uncertainty in the lead up to December’s General Election, but recent weeks have seen growing numbers of policy setters grow uneasy about the ability of the economy to spring back into life. The PMI has been specifically cited as a determinant of whether a swift loosening of policy is warranted.<\/u><\/strong><\/p>\n

IC Market\u2019s technical view<\/p><\/blockquote>\n