Pound rises after better-than-expected UK manufacturing data

London - The pound rose versus the dollar after data showed British manufacturing grew faster than expected in July, bolstered by the strongest jump in export orders in seven years.

Sterling is on track for its third day of gains as a report showed the IHS Markit’s factory Purchasing Managers Index climbed to 55.1 in July from 54.2 in June, above analysts’ estimates of 54.5.

The headline measure, which was higher than the key 50 level that divides expansion from contraction, is the market’s initial look at 3Q data and comes as Bank of England policy makers meet ahead of their latest interest-rate announcement on Thursday.

PMI data for construction and services, the largest part of the economy, come later this week.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter: Fin24’s top stories