- UK Manufacturing PMI Slows to 25-Month Low in August
UK’s manufacturing activity grew at the slowest pace in more than two years during the month of August.
According to the IHS Markit, Purchasing Managers Index fell from 53.8 in July to 52.8 in August, lower than the 53.8 predicted by analysts and the slowest rate of growth in 25 months.
Reading above the 50 mark indicate expansion.
During the month, new export orders decline for the first time since April 2016 as weaker global growth weighed on demands.
Since the Brexit referendum in June 2016, stronger global growth amid more than 20 percent drop in the pound value has helped Britain’s exports, however, trade wars between nations have weakened this edge.
“Foreign demand declined for the first time since April 2016, despite the weakness of sterling, amid reports of slower global economic growth and the increasingly uncertain trading environment,” Rob Dobson, director at IHS Markit.
Again, the uncertainty surrounding Brexit is hurting new investment, job creation, consumer spending and business confidence. Suggesting that slowing local demand is also contributing to the slowdown in productivity.
“Although slower growth of domestic demand contributed to manufacturing’s weak performance, the main constraint was the trend in new export business,” Dobson said.
The pound sterling lost more than 70 percent of its last week gain to trade at 1.2872 against the US dollar.
