Member Article

UK manufacturing sector contracts

The UK manufacturing sector has witnessed its worst performance for the past three years, according to a new survey by Markit/CIPS.

The Purchasing Managers’ Index dropped to 45.9 in may, down from 50.2 in April. Any reading below 50 indicates contraction.

Phil Hoey, senior manager for Caxton FX expressed his disappointment at the figures, which were described as the worst in three year.

He commented: “Any figure below 50 signifies contraction, which is likely to lend further support to speculation that the Bank of England may revive its quantitative easing programme in light of the downward revision to British GDP last week.

“Further significant indicators are due to be released after the Diamond Jubilee bank holiday, including Construction and Services data, which will reveal the full extent of the health of the British economy.

“The markets will now turn their focus to a raft of economic data due from the US this afternoon, with the unemployment rate and non-farm payrolls figures of particular importance.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .