UK manufacturing PMI hits highest level since June 2014

Activity in the UK manufacturing sector unexpectedly improved in September, hitting its highest level since June 2014, according to data released on Monday.

The Markit/CIPS manufacturing purchasing managers’ index rose to 55.4 from 53.4 the month before, beating expectations for a reading of 52.1.

Growth of output, new orders and employment all strengthened, with the weak exchange rate driving export orders and input prices higher.

Manufacturing production expanded at the quickest pace since May 2014, with growth led by the consumer goods sector, where output rose at the quickest pace in one-and-a-half years.

Rob Dobson, senior economist at survey compilers Markit, said: “September saw the UK Manufacturing PMI rise to its highest level since mid-2014, recovering further from its EU referendum inspired low in July. The rebound over the past two months has been encouragingly strong, and puts the sector on course to provide a further positive contribution to GDP in the third quarter.”

The pound rose to $1.2877 after the data from $1.2857, having fallen sharply after Prime Minister Theresa May vowed to trigger Article 50 by the end of March.