Investing.com – Activity in the UK manufacturing sector grew at the slowest pace in more than two years in October amid rising global trade tensions and Brexit uncertainties.
Research firm IHS Markit said its manufacturing purchasing managers’ index fell to in October, compared to forecasts for a reading of 53.1 and down from 53.6 the previous month.
New orders and employment declined for first time since July 2016, amid a drop in export orders and continuing weak domestic demand.
Input price inflation remained marked in October, despite easing to a 28-month low.
“October saw a worrying turnaround in the performance of the UK manufacturing sector. At current levels, the survey indicates that factory output could contract in the fourth quarter, dropping by 0.2%,” said Rob Dobson, director at survey compiler Markit.
“New orders and employment both fell for the first time since the Brexit vote as domestic and overseas demand were hit by a combination of Brexit uncertainties, rising global trade tensions and especially weak demand for autos.”
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