UK manufacturing PMI shows a bigger than expected drop in September

The manufacturing sector activity in the UK economy stalled its recovery momentum and decelerated slightly in the month of September, missing the consensus forecasts, the latest data from Markit revealed on Monday.

The manufacturing Purchasing Managers' Index (PMI) in the UK arrived at 55.9 points in September, as compared to a previous 56.7 (revised down from 56.9) reading. Markets had predicted the PMI to tick lower to 56.4

Key Points:    

Further solid growth of output, new orders and employment

Input price inflation rises to six-month high

Rob Dobson of Markit commented in the release, “The latest PMI survey showed a modest deceleration in the rates of expansion in UK manufacturing production and new orders. Although it looks as if the sector made solid progress through the third quarter as a whole, the growth slowdown in September is a further sign that momentum is being lost across the broader UK economy. Exports remain a bright spot, however, still rising at one of the strongest rates over the past six-and-a-half years.”