UK manufacturers reported the weakest activity in 17 months. The IHS Markit/CIPS manufacturing PMI fell to 53.9 in April 2018 from a revised down reading of 54.9 in March. The figure was below analysts’ expectations for 56.5.
Britain’s industrial sector saw weaker output and inflows of new orders, with the level of business confidence at a record five-month low.
Backlogs of orders are expected to decline, while inventories are seen to increase alongside reduction in supply chains. According to experts, industrial production growth will remain at a low level.
“On this footing, the sector is unlikely to see any improvement on the near-stagnant performance signaled by the opening quarter’s GDP numbers,” said Rob Dobson, director at survey compiler IHS Markit.
According to Dobson, this makes the chances of a near-term hike in interest rates by the Bank of England look increasingly remote.
