Investing.com – Manufacturing activity in the U.K. fell unexpectedly in April, dropping to a seven-month low data showed on Tuesday.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 54.6 in April, after declining to 56.7 in March, whose figure was downwardly revised from 57.1.
Analysts had expected the manufacturing PMI to ease up to 57.0 in April.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Average purchase prices rose for the 20th consecutive month in April, reflecting increased costs for chemicals, food products, metals, oil, packaging and timber. Although the rate of inflation remained among the highest in the survey history, it eased sharply to a five-month low.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The marked slowdown in new orders in April will definitely send a shiver down the spine of many. Much of the output growth came from manufacturers clearing the backlog of existing orders which is the equivalent of a consumer dipping into their savings to maintain their existing spending levels.”
Following the release of the data, the pound was down against the U.S. dollar, with GBP/USD dropping 0.94% to hit 1.6499.
Meanwhile, European stock markets were mixed. The FTSE 100 climbed 0.26%, the EURO STOXX 50 slipped 0.25%, France’s CAC 40 shed 0.2%, while Germany's DAX was down 0.4%.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 54.6 in April, after declining to 56.7 in March, whose figure was downwardly revised from 57.1.
Analysts had expected the manufacturing PMI to ease up to 57.0 in April.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Average purchase prices rose for the 20th consecutive month in April, reflecting increased costs for chemicals, food products, metals, oil, packaging and timber. Although the rate of inflation remained among the highest in the survey history, it eased sharply to a five-month low.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The marked slowdown in new orders in April will definitely send a shiver down the spine of many. Much of the output growth came from manufacturers clearing the backlog of existing orders which is the equivalent of a consumer dipping into their savings to maintain their existing spending levels.”
Following the release of the data, the pound was down against the U.S. dollar, with GBP/USD dropping 0.94% to hit 1.6499.
Meanwhile, European stock markets were mixed. The FTSE 100 climbed 0.26%, the EURO STOXX 50 slipped 0.25%, France’s CAC 40 shed 0.2%, while Germany's DAX was down 0.4%.