Activity in the U.K.’s manufacturing sector posted solid growth in September, a closely watched survey showed Monday, though the headline index declined slightly from August’s four-month high, and businesses said they were faced with increased inflationary pressures.
Financial information firm IHS Markit Ltd. said its purchasing managers index for the manufacturing industry, fell to 55.9 in September from the revised reading of 56.7 a month earlier. This was below the expectations of analysts polled by The Wall Street Journal, who forecast a smaller decline, and a reading of 56.4.
The 50-point line separates expansion from contraction in activity.
“Although it looks as if the sector made solid progress through the third quarter as a whole, the growth slowdown in September is a further sign that momentum is being lost across the broader U.K. economy,” said Rob Dobson, director at IHS Markit.
The U.K. economy has slowed markedly this year as inflation, which accelerated sharply after the pound’s steep post-Brexit depreciation, began to outpace wages and squeeze consumers–a key engine of growth.
Source: Dow Jones