U.K.'s factories "booming again"

|By:, SA News Editor

U.K.'s August PMI jumps to a 2 1/2-year high of 57.2 from July's 54.8 and against expectations of 55. It's the 5th-straight month in expansion territory for the index.

The Output (Production) and New Orders subindexes rose to their highest levels since 1994.

"The U.K.'s factories are booming again," says Markit's Rob Dobson, "as rising demand from domestic customers is being accompanied by a return to growth of our largest trading partner, the eurozone." (Earlier: EU PMI rises to a 26-month high).

The report sends cable higher by 0.5%, now buying $1.5551, and it's making newish Bank of England Governor Mark Carney look good for being somewhat more hawkish than most expected.

The FTSE 100 +1.8%, inline with a big rally in the rest of Europe.

U.K. equity ETFs: FKU, EWU, EWUS, DXPS.

British pound: FXB, GBB.