In the U.K., the manufacturing purchasing managers’ index rose to a four-month high of 56.9 in August, beating forecasts.
“The manufacturing sector, however, should be doing even better, given sterling’s huge depreciation and the emergence of a strong recovery in the euro zone,” Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics said in an email.
Across the euro zone, the purchasing managers’ index for manufacturing confirmed an earlier reading of 57.4 for August.
“The improvement was underpinned by buoyant demand, and in particular by foreign orders, which reached a more than six and a half year high. This suggests that firms are not being very adversely affected by euro appreciation at this stage, consistent with our view that euro appreciation impact on growth will be modest,” Apolline Menut from Barclays said in an email.
Meanwhile, the dollar index, which measures the greenback against a basket of major currencies, was little changed ahead of a U.S. jobs report.