IHS Markit data released on Monday showed that manufacturing in Britain confirmed a narrowing contraction in May, but still new orders and employment dropped at the fastest pace in 28 years.
The index for manufacturing PMI for May confirmed a widening contraction to 40.7, compared to both flash and expectations of 40.6, improving from April’s reading of 32.6.
Output, new orders and employment slipped sharply last month due to the Covid19 restrictions.
“Changes to working practices, uncertainty about how long the COVID-19 restrictions may be in place for, weak demand and Brexit worries all suggest the UK is set for a drawn-out economic recovery,” warned Rob Dobson, director at Markit. ”This will make the “new normal” one of the toughest recovery environments many manufacturers will ever have to face.”
As of 09:04 GMT, the
GBP/USD pair traded higher at 1.2407 after hitting a high of 1.2425, which is
the highest since May 11.