Positive manufacturing news amidst Brexit uncertainty

Thanks to a weaker pound following Brexit, UK manufacturing has enjoyed a strong performance since June, returning to levels of growth last seen in 2014. The data released today from Markit measures the general health of the sector by examining factors such as new orders, inventory levels and employment. The results exceeded what many analysts and politicians were expecting amidst a sceptical post-Brexit environment, with a figure that suggests tangible expansion in the sector. Reassuringly, performance has been boosted by demand from all over the world – not just the EU – boding well for Brexit as we go forward. TAM have welcomed the news in particular as we put conviction behind investing in UK economic strength and have allocated weighting into UK companies accordingly. As uncertain markets wait for any clues they can get over how Brexit will unfold, today’s news will hopefully add some positivity to investor sentiment and make future interest rate cuts less likely.