Investing.com - Manufacturing activity in the U.K. contracted at a faster rate than expected in October, falling to a three-month low, industry data showed on Thursday.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 47.5 in October from a reading of 48.4 in September.
Analysts had expected the manufacturing PMI to dip to 48.1 in October.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The data showed that U.K. companies continued to face a combination of declining export sales, weaker domestic demand and rising cost pressures.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The U.K.’s manufacturing industry continues to suffer from a potent cocktail of declining export sales, depressed demand and rising cost pressures which have resulted in a hangover that the industry has been struggling to shake off all year.”
Following the release of the data, the pound trimmed gains against the U.S. dollar, with GBP/USD adding 0.09% to trade at 1.6145.
Meanwhile, European stock markets remained mixed. The EURO STOXX 50 dipped 0.15%, France’s CAC 40 shed 0.1%, London’s FTSE 100 eased up 0.1%, while Germany's DAX was flat.
In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 47.5 in October from a reading of 48.4 in September.
Analysts had expected the manufacturing PMI to dip to 48.1 in October.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The data showed that U.K. companies continued to face a combination of declining export sales, weaker domestic demand and rising cost pressures.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The U.K.’s manufacturing industry continues to suffer from a potent cocktail of declining export sales, depressed demand and rising cost pressures which have resulted in a hangover that the industry has been struggling to shake off all year.”
Following the release of the data, the pound trimmed gains against the U.S. dollar, with GBP/USD adding 0.09% to trade at 1.6145.
Meanwhile, European stock markets remained mixed. The EURO STOXX 50 dipped 0.15%, France’s CAC 40 shed 0.1%, London’s FTSE 100 eased up 0.1%, while Germany's DAX was flat.