"UK manufacturing continues to boom, adding to the flow of upbeat data which suggest that the economy is growing faster than almost anyone expected"
- Rob Dobson, senior economist at Markit
Britain's manufacturing sector disappointed market participants last month, dragged down by weaker demand from overseas market, although the sector is still keeping pace with the economic amelioration. A gauge of manufacturing activity rose less than expected, with a figure of 56.7 in September, down from 57.1 a month earlier. Still, the figure is well above the 50 threshold, which separates growth from contraction. The main contributor for the fall was exports orders, which grew at the slowest pace since May. Despite the disappointment, analysts still consider the manufacturing sector, which accounts 10% of overall economy, should add around 0.2% to GDP growth in the coming quarter, with quarterly manufacturing expanding about 1.5% over the third quarter. The closely watched PMI statistics have repeatedly outpaced analysts' prediction in recent months, contributing to a sense the domestic economy is building up steam.
While Britain's economy continues to support government's measures, David Cameron underscored the risks stemming from the first partial shutdown in the United States, which weighs on Britain's spending plans. Cameron stressed out the shutdown is a warning for other countries, to implement properly planned public-expenditure systems to avoid such issues.
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