Investing.com – Manufacturing activity in the U.K. fell more-than-expected in October, dropping to a 28-month low, official data showed on Tuesday.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 47.4 in October, down from a reading of 50.8 in September, whose figure was revised down from 51.1.
Analysts had expected the manufacturing PMI to decline to 50.0 in October.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The U.K. manufacturing sector fell back into contraction in October, with levels of output, new orders and employment all lower than a month earlier.
The PMI has signaled a deterioration in overall operating conditions in three of the past four months.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “Following a short–lived improvement last month the manufacturing PMI has now dropped like a stone to a 28-month low and officially into contraction territory.”
“Confidence is being hit hard as the sector feels pressure from all angles, with continued uncertainty in the euro zone being the main contributing factor,” Mr. Noble added.
Following the release of the data, the pound added to losses against the U.S. dollar, with GBP/USD dropping 0.77% to trade at 1.5963.
Meanwhile, European stock markets were sharply lower. The EURO STOXX 50 tumbled 3.5%, France’s CAC 40 sank 3.3%, the FTSE 100 fell 2.1%, while Germany's DAX plunged 3.45%.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 47.4 in October, down from a reading of 50.8 in September, whose figure was revised down from 51.1.
Analysts had expected the manufacturing PMI to decline to 50.0 in October.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The U.K. manufacturing sector fell back into contraction in October, with levels of output, new orders and employment all lower than a month earlier.
The PMI has signaled a deterioration in overall operating conditions in three of the past four months.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “Following a short–lived improvement last month the manufacturing PMI has now dropped like a stone to a 28-month low and officially into contraction territory.”
“Confidence is being hit hard as the sector feels pressure from all angles, with continued uncertainty in the euro zone being the main contributing factor,” Mr. Noble added.
Following the release of the data, the pound added to losses against the U.S. dollar, with GBP/USD dropping 0.77% to trade at 1.5963.
Meanwhile, European stock markets were sharply lower. The EURO STOXX 50 tumbled 3.5%, France’s CAC 40 sank 3.3%, the FTSE 100 fell 2.1%, while Germany's DAX plunged 3.45%.