UK MANUFACTURING DATA IS "REASSURING"

- But UK budget deficit will leave us exposed in 2010 -

Date: January 4, 2010

Data released by the UK’s manufacturing industry today showed “consolidated and reassuring growth” in December 2009, and “signals a positive end to a volatile year,” according to Mark Bolsom, Head of the UK Trading Desk at Travelex, the world’s largest non-bank FX Payments Specialist.

The latest data from the CIPS (Charted Institute of Purchasing and Supply’s) PMI (Purchasing Manager’s Index), which tracks orders, output and confidence across the UK’s manufacturing sector, rose to 54.1 in December 2009, up from November’s 51.7 and well above the forecast of 52. It is the highest figure recorded since November 2007.

However, whilst Bolsom was positive about the data, he was unconvinced about its overall impact on the UK’s economy. “Although this data is a sign that our manufacturing industry is recovering, we remain the only G20 nation still in recession.

“Continued economic growth in the UK is entirely dependent on the continuing success of UK exports and global economic growth. So, despite these positive figures, the UK economy remains incredibly vulnerable, thanks to our burgeoning budget deficit.”

Sterling bounced against the dollar in reaction to the data, rising to $1.6211 from $1.6170. It barely reacted against the euro, up 0.15 pc at €1.1338 from €1.1245.

Ends

Media enquiries

Jessica Buttress
Head of PR for Travelex Global Business Payments UK
0208 415 4204
077954 497129
Jessica.buttress@travelex.com

Notes to editors
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About Travelex
Founded in 1976, Travelex is the world’s largest non-bank foreign exchange and payments specialist; with operations across four continents and 6,000 employees worldwide.

Travelex holds key positions in its three main areas of activity: Global Business Payments (TGBP, which includes Travelex Personal Payments), Currency Services and Card and Mobile Payments. Every year, more than 35,000 corporate clients and 30 million customers trust Travelex to manage their foreign exchange requirements.

Recently recognised by TowerGroup research as Industry Leader for payments innovation for SMEs, Travelex currently handles international payments worth £40 billion annually for over 750 large corporate and financial institutions.

Visit www.travelexbusiness.com/uk for more information or email the press office at jessica.buttress@travelex.com