The pound fell back below $1.30 after figures showed output in the UK’s manufacturing sector fell well short of expectations in June.
The pound was 0.4 per cent lower against the dollar, at $1.2974, after Markit’s purchasing managers’ index (PMI) for the manufacturing sector dropped to 54.3, down from 56.3 and way below the 56.5 expected, City AM reports.
However, the figure was above 50, any number below which denotes a contraction, for the 11th month in a row.
Deceleration
Markit said June’s survey pointed to a “broad-based slowdown”, with both output and new orders rising at slower rates across the consumer, intermediate and investment goods sectors.
Meanwhile, increase in new work volumes fell to their weakest in the 11 months of gains – and although manufacturers have made the most of weak sterling in recent months, they reported growth in new export business had also slowed.
This breaking news story is being updated as more information emerges.
