Weak Pound Drives U.K. Factories Back From Brexit Shock
- Manufacturing gauge jumped by record in August to 53.3
- BOE unlikely to cut rates again this year, economists say
U.K. Manufacturing PMI Rises to 53.3 for August
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U.K. factory activity reached a 10-month high in August as a weaker pound boosted exports, underscoring early evidence of British economic resilience after the Brexit vote.
IHS Markit said its Purchasing Managers Index, which dropped below the key 50 level in July, jumped by a record to 53.3. That was far better than economists had forecast; the median estimate in a Bloomberg survey was for a reading of 49. New orders rose, with sterling’s recent drop “by far the main factor” for the improvement in exports, Markit said.