Investing.com – Manufacturing activity in the U.K. fell more-than-expected in May, dropping to the lowest level since September 2009, official data showed on Wednesday.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 52.1 in May, compared to a reading of 54.4 in April, whose figure was revised down from 54.6.
Analysts had expected the manufacturing PMI to decline to 54.2 in May.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Consumer goods producers saw the sharpest contractions in both production and new orders during May, reflecting the weakness of the domestic market.
Growth in new export orders eased to the weakest during the current eight-month period of increase.
On the prices front, rates of increase in both input costs and output charges moderated further in May.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The Royal Wedding and extra bank holidays definitely weren't a bonus for UK manufacturers, with output falling and new orders contracting for the first time in two years.”
“However, the underlying trend is likely to remain one of slower growth compared to the start of the year," Mr. noble added.
Following the release of the data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.21% to hit 1.6414.
Meanwhile, European stock markets were lower. The FTSE 100 fell 0.1%, the EURO STOXX 50 slipped 0.17%, France’s CAC 40 dipped 0.15%, while Germany's DAX was down 0.14%.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 52.1 in May, compared to a reading of 54.4 in April, whose figure was revised down from 54.6.
Analysts had expected the manufacturing PMI to decline to 54.2 in May.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Consumer goods producers saw the sharpest contractions in both production and new orders during May, reflecting the weakness of the domestic market.
Growth in new export orders eased to the weakest during the current eight-month period of increase.
On the prices front, rates of increase in both input costs and output charges moderated further in May.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The Royal Wedding and extra bank holidays definitely weren't a bonus for UK manufacturers, with output falling and new orders contracting for the first time in two years.”
“However, the underlying trend is likely to remain one of slower growth compared to the start of the year," Mr. noble added.
Following the release of the data, the pound was down against the U.S. dollar, with GBP/USD shedding 0.21% to hit 1.6414.
Meanwhile, European stock markets were lower. The FTSE 100 fell 0.1%, the EURO STOXX 50 slipped 0.17%, France’s CAC 40 dipped 0.15%, while Germany's DAX was down 0.14%.