UK manufacturing activity reaches 17-month low, PMI data reveals
UK manufacturing activity reached a 17-month low in September on weaker demand, data showed on Wednesday.
The Markit/CIPS purchasing managers’ index (PMI) fell to 51.5, the lowest level since April last year, from 52.5 in August. Economists had predicted an increase to 52.7. A reading above 50 signals expansion.
In particular, the rate of growth in new orders was described as easing to near stagnation by the survey compiler. Similarly, growth in new export business was the least in 18 months due to weakness in the euro-sterling exchange rate and a number of nations within the currency union.
“September’s CIPS manufacturing survey provided another sign that the sector’s recovery lost some vim in the third quarter,” Capital Economics said. “However, we doubt that this summer’s softening marks the beginning of a prolonged slowdown.”
The report is likely to ease pressure on the Bank of England to raise interest rates.
Earlier on in Europe, Markit’s PMI for manufacturing also showed a decline in the sector to 50.3 in September from 50.5 a month earlier, surprising analysts who had expected it to remain unchanged.
The European Central Bank (ECB), which meets on Thursday, has been under strain to address weak economic data.