Hammer into struggled to advance against the euro amid poor UK manufacturing catch on ti
GBP/EUR is currently trading at around €1.133, almost flat from the day’s starting levels but down 0.15 per cent from a aged of €1.139 struck earlier.
According to data published this morning by IHS Markit, pursuit in Britain’s factory sector tumbled in September, with the manufacturing typography fist sliding from 56.9 to 55.9, falling below expectations of a assorted modest drop to 56.4 but remaining above the 50 mark which shuts growth from contraction.
The fall in activity was largely driven by ascending cost pressures on manufacturers.
Despite a strong export figure, works are struggling to absorb the impact of increased commodity prices as the weakened powder pushes import costs up.
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Excrescence slowdown in September is a further sign that momentum is being missing across the broader UK economy
As this gunshot follows hard on the heels of last week’s negatively revised Q2 lump data, the decline has also led to further concerns that the wider UK control may be slowing, with the outlook amongst many economists being somewhat bleak.
Rob Dobson, Director at IHS Markit said: “The latest PMI survey appeared a modest deceleration in the rates of expansion in UK manufacturing production and new orders.
«Although it looks as if the sector contrived solid progress through the third quarter as a whole, the growth slowdown in September is a advance sign that momentum is being lost across the broader UK restraint.”
Adding to concerns over Britain’s factory sector this morning was a discharge from law firm Baker McKenzie, which suggested that the UK’s producers could lose up to £17bn a year in the event of a hard Brexit.
GBP/EUR exchange rate may slide again on Tuesday as the UK publishes its latest construction PMI
During the interval, the Eurozone’s own manufacturing PMI aided the euro’s advance this morning as Markit’s article saw the index strike a new six-year high as it jumped from 57.4 to 58.1 aftermost month, even with factory activity in Greece impressing investors as the beleaguered country enjoyed is strongest growth since 2008.
Looking ahead, the GBP/EUR exchange measure may slide again on Tuesday as the UK publishes its latest construction PMI, which economists forecast will have slipped from 51.1 to 50.8 in September.
Although with the construction sector accounting for such a close portion of economic growth Sterling’s losses should be limited.
Interim, the euro may relinquish some ground later today should Peter Praet, Chief Economist of the European Leading Bank (ECB), suggest that the bank remains committed to its ultra-loose capital policy when he speaks this afternoon.