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UK manufacturing PMI declines at the fastest pace in seven years

UK manufacturing PMI declines at the fastest pace in seven years

Britain's manufacturing PMI fell last month at the fastest pace in seven years amid uncertainty associated with the Brexit that led companies to cut their inventories.

The IHS Markit manufacturing purchasing managers' index in Britain fell in December to 45.6 from 49.1 in November, the fastest pace of decline since 2012, where a reading below 50 indicates a contraction in manufacturing activity.

The latest growth data showed that UK economic growth slowed to 1.1% per annum in the third quarter of 2019, while industrial output fell by as much as 1.3% year-on-year.

The political conflict inside the British Parliament regarding the Brexit has dragged down economic growth, with the manufacturing sector being the most affected.

As of 12:14 GMT, the pound traded lower for the first time in six sessions at $1.3207, yet the GBPUSD pair is still set for its second consecutive weekly gain.

Tomorrow, eyes will focus on the U.K. construction PMI for December, which may signal a slight improvement to 45.8 from 45.3 in November.

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