British manufacturing PMI achieves the worst level since early 2013
In July, the contraction in manufacturing activity in Great Britain appeared to be worse that initially expected, achieving its worst value since early 2013, as Monday’s industry data states.
Market research group Markit reported that in June its British manufacturing PMI sagged to a seasonally adjusted 48.2 the previous month from a reading of 52.1.
Since 2013, it was the worst level and it came below the preliminary report issued on July 22, which had shown the PMI tumble to 49.1 in July.
On the index, a reading higher 50 points out to industry expansion, while the reading below is a clear signal of contraction.
In the report, it was indicated that the domestic market was heavily impacted by uncertainty both before and after Britain’s vote to leave the EU.
Apart from that, the market research group stressed that weaker pound exchange rates contributed to fresh export order growth.
The weakening order book trend as well as upswing in cost inflation indicated further near-term pain for British manufacturers.