The manufacturing sector in Britain returned to recovery and growth during the month of June, according to statistical data of purchasing managers index, after the government eased the procedures for closure and social distancing, which helped manufacturing activity to recovery gradually, while the services sector is still witnessing a contraction.
The UK manufacturing PMI in June recorded 50.1 after the previous reading of 40.7 had been revised from 40.6, while expectations indicated 45.2, noting that reading above 50 indicates growth while a reading below 50 indicates contraction.
The data showed a slight increase in manufacturing activity, which is the first in four months, in light of the increase in production volumes after the partial reopening of factories, but despite this the sub-index of total new orders continued to drop due to the decline in new sales and reliance only on completing current sales contracts.
On the other hand, the PMI reading for the services sector improved in June to 47.0, but it remains within the contraction region, but improved markedly from May’s reading of 29.0, which was revised from 27.8.
The data was
sufficient to push the British pound to recover for a second day in a row
against the US dollar, where the pair traded at 1.2473, as of 09:09 GMT, after
opening today's session at 1.2453, while it recorded the highest level at