Sterling dips after subdued British factory data
On Wednesday, the British pound went down after data disclosing that In May, British manufacturing descended right into expansion territory, though growth remained suppressed as OECD reduced its British growth forecast and warned of Brexit’s negative outcome.
The currency pair GBP/USD hit lows of 1.4450, down from approximately 1.4467 ahead of the data.
Last month, the British manufacturing purchasing managers’ index leapt to 50.1 from 49.4. By the way, financial experts had hoped for a reading of 49.6.
Apparently, the index was just fractionally higher the 50.0 level, which traditionally separates contraction from growth.
The domestic market was still upbeat for manufacturers, especially for consumer goods producers, though a softer global market kept weighing on new export orders.
There were also clear indications that mounting uncertainty stemming from struggling growth as well as an approaching European Union referendum is definitely affecting investment spending