Investing.com - Manufacturing activity in the U.K. expanded in line with expectations in May, underlining optimism over the country's economic outlook, industry data showed on Monday.
In a report, market research group Markit said that its U.K. manufacturing PMI dipped to a seasonally adjusted 57.0 last month, in line with expectations and down from a reading of 57.3 in April.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The PMI has now signaled an improvement in overall operating conditions in each month since March last year.
New export orders rose for the fourteenth consecutive month in May. Companies reported improved demand from the US, Asia, Canada, Europe, the Middle East and New Zealand.
Commenting on the report, Rob Dobson, senior economist at survey compiler Markit, said, "Manufacturing production is currently expanding at a quarterly rate close to 1.5%, according to the PMI, helping the sector take huge strides towards recouping the output lost during the recession."
Following the release of the data, the pound trimmed losses against the U.S. dollar, with GBP/USD shedding 0.06% to trade at 1.6744, compared to 1.6730 ahead of the data.
Meanwhile, European stock markets were mixed. London's FTSE 100 eased up 0.25%, the Euro Stoxx 50 increased 0.1%, France's CAC 40 dipped 0.2%, while Germany's DAX edged 0.15% higher.
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