UK factory growth slowed in August for the first time in two years, according to PMI figures released today.
The Markit/CIPS Uk manufacturing PMI index figure fell from 51.9 in July, to 51.5 in August. Whilst the number is still above the 50 mark that indicates overall growth, a downward trend in manufacturing suggests that the sector will contribute less to the economy this quarter.
The PMI’s jobs index fell below 50 for the first time since April 2013, adding to signs that Britain’s labour market is beginning to slow.
However, more new orders came in in August than the last five months. Rob Dobson, senior economist at Markit, told Reuters:
“The UK manufacturing sector remains in a holding pattern, with production growth hovering around the stagnation mark and marginal jobs losses reported.
“On this basis, the sect looks unlikely to make much of a contribution to the solid gain in broader GDP growth this quarter.”
