·
UK Feb Markit
Manufacturing PMI Disappoints Down 2.1pts to
50.8
o
Suggests Most Marginal
Monthly Expansion Since April 2013
o
New Orders Slow for Consumer
and Capital Goods, Rise for Intermediates; Export Orders Fall for Second Month
o
Output Growth Slows to 7m
Low, Slowed by Consumer and Capital Goods Sectors
o
Employment Declines Slightly
for Second Month
o
Margins: Input Price
Deflation Eases to 7m Low, Selling Prices Fall for Sixth Month
Comment: The crucial thing to know about this purchasing managers' index is that historically there is no statistical link between this and the monthly official surveys of industrial output - realistically, therefore, it contains no useful information. However, Markit's surveys provide regular fodder for newspaper headlines. Technically, an index reading above 50 is said to indicate an improvement in business conditions, below 50 a deterioration. So Feb's 50.8 result suggests a marginal improvement. But it's not clear how such precise results are produced.
