Investing.com - Activity in the UK manufacturing sector slowed last month, according to a closely watched business survey released on Monday.
Research firm IHS Markit said its manufacturing purchasing managers’ index fell to 52.8 in August, compared to forecasts for a reading of 53.9. That was its lowest reading in the last 25 months
The prior month’s reading was 53.8.
The report indicated that the slowdown was due to the first contraction in new export orders since April 2016.
It also highlighted that job creation slowed to near-stagnation in August, while business optimism dipped to a 22-month low.
“Based on its historical relationship with official ONS data, the latest PMI report is broadly consistent with zero growth in manufacturing production, meaning the sector will likely fail to provide any support to the wider UK economy in the third quarter,” IHS Markit director Rob Dobson said.
“While a hoped-for improvement in new export order growth and new product launches are forecast to stimulate future expansion, manufacturers are also expressing rising concerns about the uncertain backdrop of Brexit,” he concluded.