UK factory rebounds from seven-month low, yet remains in contraction

  • by Ahmed Mamdouh
  • October 1, 2019, 10:11 AM
  • 60 Views
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U.K. manufacturing sector rose from a seven-month low recorded in August, lifted by rise in stocks of purchases and input buying volumes, the Purchasing Managers’ Index data showed.

Manufacturing PMI narrowed contraction to 48.3 last month from a prior of 47.4. Analysts had predicted a reading of 47.0.

However, the sector remained in contraction in September as the trade and economic uncertainties exacerbated concerns about Brexit.

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“The rate of job losses accelerated to a six-and-a- half-year high, highlighting how manufacturers are increasingly seeking to cut costs.,” said Rob Dobson, Director at IHS Markit.

As of 09:20 GMT, the pound traded lower for a fifth straight session at $1.2275 after touching a bottom at $1.2259, the lowest level since September 9.

Later in the week, investors will focus on the services PMI data, which will give a clearer picture about the business activity in Britain by the end of the third quarter.

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