The Markit/CIPS UK Manufacturing PMI for April released at 9:30am beat analysts expectations with a print of 57.3 for April vs 55.8 March. The manufacturing index rose to a 5 month high, registering one of the best readings over the last 3 years. This is a significant boost to the UK government, as the economic recovery begins to really take hold, though this puts further pressure on the Bank of England.
Carney reiterated that increasing interest rates would happen when the slack in the labour market is reduced, and would be at a gradual pace. With economic growth picking up and concerns of a property bubble, traders are betting that they may have to bring forward the first rate rise.
Following the release sterling rallied in the FX markets against the greenback to a 5 year high, the highest price since 2009.
Full news release Markit/CIPS UK Manufacturing PMI for April