Investing.com – Manufacturing activity in the U.K. rose unexpectedly in September, rebounding from a 26-month low, official data showed on Monday.
In a report, market research group Markit said that its U.K. manufacturing PMI rose to a seasonally adjusted 51.1 in September, up from a reading of 49.4 in August, whose figure was revised up from 49.0.
Analysts had expected the manufacturing PMI to decline to 48.5 in September.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Despite the moderate expansion in manufacturing activity, new export orders contracted at the quickest pace since May 2009. There were reports of lower demand from the US, Europe, Asia and the Middle East.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The slight improvement is mainly due to a rise in output. However, we are still a long way off from celebrating.”
“The slowdown in the global economy especially in the euro zone continues to make an impact as new export orders fall at the sharpest pace since 2009,” Mr. Noble added.
Following the release of the data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.27% to trade at 1.5541.
Meanwhile, European stock markets were sharply lower. The EURO STOXX 50 fell 1.9%, France’s CAC 40 dropped 1.95%, the FTSE 100 declined 1.9%, while Germany's DAX sank 2.25%.
In a report, market research group Markit said that its U.K. manufacturing PMI rose to a seasonally adjusted 51.1 in September, up from a reading of 49.4 in August, whose figure was revised up from 49.0.
Analysts had expected the manufacturing PMI to decline to 48.5 in September.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Despite the moderate expansion in manufacturing activity, new export orders contracted at the quickest pace since May 2009. There were reports of lower demand from the US, Europe, Asia and the Middle East.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The slight improvement is mainly due to a rise in output. However, we are still a long way off from celebrating.”
“The slowdown in the global economy especially in the euro zone continues to make an impact as new export orders fall at the sharpest pace since 2009,” Mr. Noble added.
Following the release of the data, the pound held on to losses against the U.S. dollar, with GBP/USD shedding 0.27% to trade at 1.5541.
Meanwhile, European stock markets were sharply lower. The EURO STOXX 50 fell 1.9%, France’s CAC 40 dropped 1.95%, the FTSE 100 declined 1.9%, while Germany's DAX sank 2.25%.