Markit, a market research group, reported on Monday that activity in the manufacturing sector in the U.K. declined more than expected on a decrease in exports and an increase in costs. The Markit manufacturing PMI in September fell to 48.4, compared to an August's figure of 49.6, which was revised upwards. Analysts expected that the last month's reading would be 49.5.
"Overseas sales continue to be hit by the ongoing deterioration in global economic growth, with the euro zone—the UK's largest export market—at the epicentre of the weakness. In this global economic environment, manufacturers look certain to struggle and the sector is unlikely to act as a driver of economic growth," said Chris Williamson, Markit chief economist.