Investing.com - Manufacturing activity in the U.K. expanded at a slower rate than expected in March, remaining in contraction territory for the second consecutive month, industry data showed on Tuesday.
In a report, market research group Markit said that its U.K. manufacturing PMI rose to a seasonally adjusted 48.3 in March from a reading of 47.9 in February.
Analysts had expected the manufacturing PMI to rise to 48.5 in March.
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, “March PMI data indicate that the U.K. manufacturing sector contracted again during the opening quarter of 2013, to remain a drag on the broader economy.”
“These weak numbers may be sufficient to tip the balance and convince more members of the MPC to consider additional QE at their meeting next week,” he added.
Following the release of the data, the pound held on to losses against the U.S. dollar, with GBP/USD dipping 0.1% to trade at 1.5221.
Meanwhile, European stock markets remained higher. The EURO STOXX 50 rose 0.4%, France’s CAC 40 gained 0.5%, London’s FTSE 100 climbed 0.7%, while Germany's DAX advanced 0.6%.
In a report, market research group Markit said that its U.K. manufacturing PMI rose to a seasonally adjusted 48.3 in March from a reading of 47.9 in February.
Analysts had expected the manufacturing PMI to rise to 48.5 in March.
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, “March PMI data indicate that the U.K. manufacturing sector contracted again during the opening quarter of 2013, to remain a drag on the broader economy.”
“These weak numbers may be sufficient to tip the balance and convince more members of the MPC to consider additional QE at their meeting next week,” he added.
Following the release of the data, the pound held on to losses against the U.S. dollar, with GBP/USD dipping 0.1% to trade at 1.5221.
Meanwhile, European stock markets remained higher. The EURO STOXX 50 rose 0.4%, France’s CAC 40 gained 0.5%, London’s FTSE 100 climbed 0.7%, while Germany's DAX advanced 0.6%.