Investing.com - Manufacturing activity in the U.K. expanded at the slowest pace in 17 months in September, dampening optimism over the country’s economic outlook, industry data showed on Wednesday.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 51.6 last month from a reading of 52.2 in August. Analysts had expected the index to inch up to 52.5 in September.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The mid-year slowdown in the rate of expansion of manufacturing production continued in September, as growth of new orders eased to near-stagnation.
Commenting on the report, Rob Dobson, senior economist at survey compiler Markit, said, “September’s disappointing reading will add to the air of caution as to whether the economy is ready for higher interest rates."
GBP/USD was trading at 1.6170 from around 1.6200 ahead of the release of the data, while EUR/GBP was at 0.7788 from 0.7773 earlier.
Meanwhile, European stock markets remained broadly lower. London’s FTSE 100 shed 0.35%, the DJ Euro Stoxx 50 fell 0.2%, France's CAC 40 dipped 0.15%, while Germany's DAX tacked on 0.1%.