Sterling soars as UK manufacturing sector bounces back

The pound has soared after the manufacturing industry threw off the shackles of Brexit uncertainty last month to record its biggest month-on-month rise in output for 25 years. The Markit/CIPS UK Manufacturing purchasing managers' index said companies were taking "a business as usual" approach, as activity swung to a 10-month high in August following a slump in the immediate aftermath of the EU referendum result. The closely watched survey said output hit 53.3 last month, up from a revised reading of 48.3 in July and above economists' expectations of 49. A reading above 50 indicates growth. The update caused sterling to jump 0.8 per cent against the US dollar, breaking through the 1.32 barrier to reach 1.324 dollars. The pound was also up 0.9 per cent against the euro at 1.188 euros. The PMI survey in July suggested the manufacturing sector was in the doldrums following Britain's vote to leave the European Union, with Brexit uncertainty hampering growth and forcing the industry to a 41-month low. But manufacturing activity rallied in August, matching the highest month-on-month increase since the survey began nearly 25 years ago. The resurgence was driven by a rebound in...

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