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The UK manufacturing sector shrank at the fastest pace in almost six-and-a-half years in July, survey data from IHS Markit revealed Thursday.
The factory Purchasing Managers' Index remained unchanged at 48.0 in July, while the score was forecast to fall to 47.6. The last time the PMI was below its current level was almost six-and-a-half years ago.
The weak, highly competitive environment makes a sustained revival highly unlikely in the coming months, Rob Dobson, director at IHS Markit, said.
However, a short-lived bounce leading up to October should not be ruled out, as some manufacturers are already gearing up to re-start Brexit preparations, Dobson noted.
Production and new orders contracted amid ongoing headwinds of political uncertainty, a global economic slowdown and the unwinding of stocks built prior to the original Brexit date. Further, employment declined for the fourth month in a row in July.
Price pressures eased at UK manufacturers, with rates of increase in both input costs and selling prices the weakest for over three years. Nonetheless, manufacturers maintained a positive outlook in July.
