Investing.com - Manufacturing activity in the U.K. expanded at a slower rate than expected in September, dampening optimism over the country’s economic outlook, industry data showed on Tuesday.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 56.7 in September from a downwardly revised reading of 57.1 in August.
Analysts had expected the manufacturing PMI to ease up to 57.3 last month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Rob Dobson, senior economist at survey compiler Markit, said, “U.K. manufacturing continues to boom, adding to the flow of upbeat data which suggest that the economy is growing faster than almost anyone expected.”
“This stronger than expected performance will raise further questions in the City with regards to the Bank of England’s forward guidance on interest rates remains appropriate.”
Following the release of the data, the pound held on to gains against the U.S. dollar, with GBP/USD rising 0.27% to trade at 1.6227.
Meanwhile, European stock markets remained mixed. The EURO STOXX 50 rose 0.8%, France’s CAC 40 advanced 0.75%, Germany's DAX tacked on 0.5%, while London’s FTSE 100 dipped 0.2%.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 56.7 in September from a downwardly revised reading of 57.1 in August.
Analysts had expected the manufacturing PMI to ease up to 57.3 last month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Rob Dobson, senior economist at survey compiler Markit, said, “U.K. manufacturing continues to boom, adding to the flow of upbeat data which suggest that the economy is growing faster than almost anyone expected.”
“This stronger than expected performance will raise further questions in the City with regards to the Bank of England’s forward guidance on interest rates remains appropriate.”
Following the release of the data, the pound held on to gains against the U.S. dollar, with GBP/USD rising 0.27% to trade at 1.6227.
Meanwhile, European stock markets remained mixed. The EURO STOXX 50 rose 0.8%, France’s CAC 40 advanced 0.75%, Germany's DAX tacked on 0.5%, while London’s FTSE 100 dipped 0.2%.