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  • UK manufacturing PMI hits record high; soaring house prices; oil rallies – as it happened | Business

UK manufacturing PMI hits record high; soaring house prices; oil rallies – as it happened | Business

By on June 1, 2021 0

That’s all for today. A quick recap.

Factories in the UK, Eurozone and US have all grown very rapidly as demand has jumped as lockdown measures are eased.

The UK manufacturing PMI index, which tracks activity, hit its highest level since the survey began in 1992. The eurozone index also hit a record high, with output rising and new orders.

IHS Markit PMI â„¢

Growth in the UK manufacturing sector exploded in May, with the #PMI hit a record high (65.6) amid the largest new order intake in nearly 3 decades. However, producers have also seen a disruption in the supply chain, causing production costs to skyrocket. Read more:

June 1, 2021

And with US factories also recording the highest PMI reading since at least 2007, and Chinese manufacturing growing the fastest this year, the global index hit an 11-year high.

But cost pressures have hit businesses, forcing them to raise their own prices, while U.S. bosses have signaled a struggle to find workers.

IHS Markit PMI â„¢

The global manufacturing sector experienced a strong recovery in output in May, as the #PMI again hit an 11-year high at 56.0 (April: 55.9). However, the pressures on capacity were still evident, resulting in soaring prices. Read more:

June 1, 2021

Inflation was also the center of attention in the eurozone, where the consumer price index reached 2% for the first time since 2018, above the ECB’s target.

Energy prices were the main driver … and this trend could continue, with Brent crude reaching $ 71 a barrel for the first time since March, as OPEC + ministers agreed to keep rising slowly production.

Brent crude oil chart

U.S. crude briefly hit its highest level since 2018.

OPEC + has not set a plan beyond July, however, as they wait to see how demand evolves and whether sanctions against Iran are lifted as part of a nuclear deal with the United States.

Photograph: Ramzi Boudina / Reuters

Optimism over the recovery drove global equity markets to a new record today, with analysts predicting further gains to come.

European stock markets hit a new high tonight as the FTSE 100 closed at a three-week high as rising commodity prices pushed miners higher.

The British pound hit a three-year high against the US dollar in early trading, but is now down half a cent to $ 1.4155 as traders question whether plans to end the lockdown June 21 will be delayed.

The Canadian economy grew more slowly than expected in the first quarter and appears to have contracted 0.8% in April as further restrictions hit activity.

In the UK, house prices jumped in May to a new high, according to Nationwide.

Prices have risen 10.9% in the past year, with the “space race” fueling demand for larger, more rural properties with a garden.

UK house prices

My colleague Joanna Partridge writes:

Young homebuyers are just as eager to build a new country life as they are to relocate to the bright lights of a big city as they respond to ongoing post-pandemic changes in work patterns and the rapid rise in real estate prices.

Data released Tuesday by the Nationwide Building Society showed that demand for real estate has pushed average home prices up 10.9% over the past year, the fastest pace in nearly seven years.

Prices rose an average 1.8% in May, after rising 2.3% in April, according to the figures, pushing the annual rate up from 7.1% a month earlier.

UK housing market

The Bank of England is closely monitoring the housing boom, Deputy Governor Sir Dave Ramsden told us:

It was a busy day in the food business. The UK company behind Jammie Dodgers, Wagon Wheels and Maryland Cookies has been sold to Italian Ferrero (so there will be novelties at the reception of the ambassador) ….

…. and donut maker Krispy kreme decided to enter the US market after a five-year gap.

Here are some more stories from today:

Good evening. GW