Weak manufacturing data raises fresh fears of British (and global) slowdown
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“The first reading below 50 from the UK’s manufacturing sentiment survey since May 2013 raises fresh concerns over Britain’s economic growth prospects but also those of the world, as this weak number follows equally disappointing readings from China and America.
“The Markit/CIPS purchasing managers’ index (PMI) tests sentiment among British manufacturers. The higher the index’s reading comes in above 50, the more optimistic manufacturers are about the future, while a score below that mark is often taken as a warning of a future slowdown or even a recession.
“The UK indicator has lost momentum badly this year, despite weakness in sterling, which should in theory help exporters’ competitiveness in global markets. The PMI has averaged 51.9 for the last 12 months and it peaked at 55.5 last October, whilst today’s number of 49.2 is the lowest it’s been for three years.”
Source: Markit/CIPS
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