Strong UK PMI data bodes well, but signals more price pressure

21 May 2021  
4 min read

Commenting on this morning’s UK PMI data, Melanie Baker, senior economist at Royal London Asset Management said: 

“This was another strong UK PMI reading helped by continued reopening after the lockdown earlier this year. Business optimism rose too, boding well for the near-term outlook.

“As in the Euro area, the UK PMI also signalled significant price pressures, however. Both input and output cost PMIs rose as companies passed on increased costs.  This does not necessarily mean that consumers will experience significantly higher prices. However, it supports the view that we are still some way off the peak in UK consumer price inflation this year.”

“It was reassuring to see another strong improvement in the employment PMI. Until the Spring, this indicator had been weak in the UK, but now signals a rapidly improving labour market."

About Royal London Asset Management (RLAM):

Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.

RLAM manages £164 billion of assets and employs 129 investment professionals as at 31 December 2021. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.

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Issued by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.

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