U.K. manufacturing sector reported a narrowing expansion in August, hitting the lowest level in seven years, raising concerns about the growth pace in the third quarter.
Manufacturing Purchasing Managers’ Index scored a contraction of 47.4 last month from a prior of 48.0 in July. Analysts had predicted a reading of 48.0.
The dismal figures have showed that British manufacturers are not taking advantage of the weaker pound, as new export orders plunged to the lowest level since 2012.
“The global economic slowdown was the main factor weighing on new work received from Europe, the USA and Asia. There was also a further impact from some EU-based clients routing supply chains away from the UK due to Brexit,” said Rob Dobson, Director at IHS Markit.
As of 09:30 GMT, the pound tumbled to a low of
$1.2076, the lowest since August 20, noting that it fell to the lowest since
January 2017 last month.