The pace of expansion in the U.K.'s manufacturing sector slowed in February as new orders both domestically and from overseas were little changed from January while costs increased unexpectedly, data from Markit and the Chartered Institute of Purchasing & Supply showed Thursday.
The data confirm that the still uncertain economic climate is hampering the U.K.'s economic recovery.
Domestic orders were weighed down by weaker public-sector demand as government spending cuts continue to bite, while overseas demand was tempered by lower orders from the mainland Europe despite growing demand from Asia and the U.S.
The Purchasing Managers' Index for the manufacturing sector slipped to 51.2 in February from 52.0 in January.
The January number was revised from an originally reported 52.1.
The PMI figure was a surprise as economists surveyed by Dow Jones Newswires last week had estimated the index was unchanged at 52.1.
A reading above 50.0 indicates the sector is expanding, while a reading below 50.0 indicates it is contracting.
"The latest PMI survey brought the headwinds faced by manufacturers into sharper focus," said Rob Dobson, senior economist at Markit.
"If this combination of rising costs and weak demand persists, sustaining output growth and job creation will become increasingly difficult," he said.
No comments:
Post a Comment