U.K. October Manufacturing PMI shows upward trend

The UK's October Manufacturing PMI rose to 55.5, after a marginal upward revision to 51.8 in September (from 51.5). The overall index was upbeat at a 16-month high, considerably above market expectations. 

The output index accelerated to 58.3 (+5.2pp) as new orders recorded a jump to 56.9 (+4.0pp), its highest level since July 2014, with the subcomponent new export orders picking up marginally less by 1.3pp (to 52.0). This highlights that while recently, export orders are seemed to be improving at the expense of domestic orders, today's release indicates domestic orders were in fact the primary driver of the resurgence, says Barclays. 

The employment index also improved considerably (+3.7pp), touching a 17-month high. Cost pressures continued as prices remained mired in contractionary territory. Input prices posted a slight recovery but remained low (at 39.7; +1.4pp) and nonetheless declined on a 3mma/3mma basis, while output prices edged lower to 48.0 (-0.7pp).