Strong sterling and China fears hit factories

The Markit/CIPS purchasing managers' index for the manufacturing sector fell to 51.5 last month from 51.9 in July – well below the long-term average of 54.2 – as sterling's strength and sluggish overseas demand continued to weigh on UK factories. While the British economy expanded by 0.7% in the second quarter of this year, manufacturing recorded a 0.3% decline. Economists said yesterday's PMI reading was consistent with a further 0.2% drop in the sector. Consumer goods continued to power ahead, but exporters limped along as new business fell for the fifth successive month. Howard Archer at IHS Global Insight said: 'Lacklustre manufacturing activity is worrying for hopes that UK growth can become more balanced and less dependent on the services sector and consumer spending.'


Note: News bulletin content has been provided by a third-party and is not the opinion of Santander.


Other Articles

When you’re an established business, recruiting top talent in all the areas you need can seem like a never-ending challenge.


If you’re a start-up or small business, how can you put together an attractive employee package to appeal to top talent – graduate and…


Mexico is predicted to become one of the world’s top 10 economies in the next 10 or 20 years.

Stop fraud

More than one million incidents of financial fraud occurred in the first six months of 2016, according to official figures released by…

Santander’s Head of SME International Mark Collings discusses why exporting to new global markets may provide businesses with new and…

Where Next?