UK manufacturing PMI: Expect little change in January - HSBC

Analysts at HSBC offer key insights on what to expect from the upcoming UK manufacturing PMI data due for release at 0930 GMT later today.

Key Quotes:

“UK manufacturing PMI fell by two points in December, with a big drop in new orders and a slowdown in employment growth. However, the future output index was at its highest in seven months - perhaps pointing to still the strong sentiment in a sector which has seen good growth over the last half-year or so.

For January, manufacturers may have felt the pain of higher oil prices (as their Eurozone counterparts seem to have done). The rise in sterling may also be starting to slow growth in external demand for some. Nonetheless, still strong sentiment, and the fact that the base is already low after last month's fall, leave us forecasting little change in the index.”