The pound would have been boosted by PMI readings well above market expectations for the UK, but this was tempered by most of Europe’s and the USA’s PMIs also being above expectations.
Manufacturing in June expanded, at 50.1, although services were still contracting with a reading of 47 (still way off last month’s 29).
The pound was also victim, briefly, to a fall in stocks globally after a badly worded comment from A US economics advisor that the USA-China trade deal was off – something later denied by President Trump.
There has been discussion but no news yet on a possible cut in VAT – as happened after the financial crisis in 2008 – to help stimulate the economy.
Overall the picture is emerging of an economy heading for a faster recovery than expected, but the picture could easily be reversed.
