2 February 2010

Mortgages down, Manufacturing up, Pound down, Exports up!

December saw the first drop in mortgage approvals in over 12 months, which doesn't bode well for the widely heralded pick-up in the housing market.

However, at the same time as this data was being released, the Purchasing Managers Index (PMI) for manufacturing issued a note showing a rise from 54.6 in December to 56.7 in January which suggests manufacturing output is recovering rapidly, with export orders rising at the fastest rate since data was first collected back in 1996.

This rise in exports is a combination of faster inventory turn, the global recovery, and the weaker pound. And given that sterling fell again yesterday on news of the lower mortgage approvals, things should continue to improve in the manufacturing sector!

If you are considering an investment in the manufacturing sector then don't hesitate to call us.

For further information, please contact Charles Gay, +44 (0)20 7489 4350, charles.gay@andeman.com