In China the Purchasing Managers Index has been rising for the fifth consecutive month. Still, most experts had hoped for more robust growth in the index.
In April the PMI only advanced by 0.2%, having fallen short of the forecasted 0.5%. Such a weak increase is a clear signal of slowing China's economy. By the end of the year the GDP of China is projected to equal mere 7.5%.
Manufacturing activity has been expanding in the USA too. The headline figure of ISM Manufacturing Index surpassed expectations by 0.4 point and constituted 53.4 points.
Predictions regarding the UK PMI were not destined to come true as well. The British PMI moved close to the benchmark level of 50 points that separates growth from contraction. The index decreased to 50.5 points.
The British pound went down by 30 US cent only to recover the loss later. Thus, the British currency consolidated at the level of one US dollar and 62.2 cent.
The pound has been demonstrating an upward trend, so most probably the UK economy will continue sinking deeper into recession. Now the Bank of England has to deal with a high rate of the national currency apart from inflationary risks.