UK manufacturing contraction deepens in October

City A.M. Reporter
The downturn in British manufacturing worsened last month, as companies received fewer orders and costs rose at a faster pace, a survey showed this morning.

The CIPS/Markit Purchasing Managers' Index (PMI) for the manufacturing sector fell to 47.5 from a downwardly revised 48.1 in September, falling further below the 50 mark which indicates growth.

Manufacturers cut production for a fourth month in a row and new orders fell at a faster rate than in September as export demand dwindled, the PMI data showed.

"While the road to an export-led recovery is still blocked by the ongoing difficulties in the Eurozone, it is concerning to hear further reports of the global slowdown hurting trade with other regions such as Asia," Markit economist Rob Dobson said this morning.