© Dukascopy
|
"The manufacturing engine has run out of steam"
- Rob Dobson, senior economist at Markit
U.K. manufacturing sector contracted modestly in November, according to the data published by the Markit agency on Thursday. The manufacturing purchasing managers' index slid to 47.6 in November from 47.8 in October. A reading below 50 signals contraction.
"The manufacturing engine has run out of steam", said Rob Dobson, senior economist at Markit. "Output is falling at the fastest rate since early 2009 as order inflows from domestic and overseas markets continue to deteriorate."
The reading "intensifies fears that the overall economy will contract in the fourth quarter although the key factor will be the performance of the dominant services sector given that manufacturing output only accounts for 10.2% of gross domestic product," said Howard Archer, chief U.K. economist at IHS Global Insight.