UK manufacturing PMI falls to three-year low

UK manufacturing PMI falls to three-year low

The manufacturing sector in the United Kingdom witnessed a slowdown in June, falling to the lowest level in three years, on ease in expansion in production and new orders.

Manufacturing Purchasing Managers’ Index retreated to 54.3 in June from a revised of 56.3 in May, while analysts had predicted a rise to 56.4.

However, over the second quarter, factory growth is still the strongest since 2014. 

"While the survey data add to signs that the economy is likely to have shown stronger growth in the second quarter, further doubts are raised as to whether this performance can be sustained into the second half of the year," mentioned Rob Dobson, senior economist at IHS Markit.

"Export orders remained disappointingly lackluster despite the ongoing competitiveness boost of the weak sterling exchange rate," he added. 

As of 08:50 GMT, the pound traded lower against its U.S. counterpart at 1.2975 from the session’s open at 1.3000.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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