1 Jul 2015
UK manufacturing activity slows to 26-month low in June
FXStreet (Mumbai) - The seasonally adjusted Markit/CIPS Purchasing Manager’s Index (PMI ) fell to a 26-month low of 51.4 in June, down from a revised reading of 51.9 in May (previously reported at 52.0).
Sterling exchange rate hurting export orders
The report showed new export orders fell on the back of subdued demand from Europe – partly due to the sterling exchange rate.
As per Rob Dobson, Senior Economist at survey compilers Markit, “Export trade is also likely to remain a drag on the economy, given the uncertainty surrounding the Greek debt crisis. This makes it difficult to gauge fully any possible knock-on effects for the UK’s trade with the euro area particularly in relation to impact from the euro-sterling exchange rate.”
The report also showed manufacturing employment increased for the twenty-sixth successive month in June. Average input costs rose for the first time in ten months during June, however, the rate of input cost inflation was only moderate and well below the long-run survey average. Average selling prices reduced for the fifth time in the past six months.
Sterling exchange rate hurting export orders
The report showed new export orders fell on the back of subdued demand from Europe – partly due to the sterling exchange rate.
As per Rob Dobson, Senior Economist at survey compilers Markit, “Export trade is also likely to remain a drag on the economy, given the uncertainty surrounding the Greek debt crisis. This makes it difficult to gauge fully any possible knock-on effects for the UK’s trade with the euro area particularly in relation to impact from the euro-sterling exchange rate.”
The report also showed manufacturing employment increased for the twenty-sixth successive month in June. Average input costs rose for the first time in ten months during June, however, the rate of input cost inflation was only moderate and well below the long-run survey average. Average selling prices reduced for the fifth time in the past six months.