UK manufacturing growth slows as export orders fall
A cocktail of declining exports, depressed domestic demand and escalating costs saw operating conditions in UK manufacturing deteriorate for the sixth successive month in October.
The authoritative Markit/CIPS Purchasing Manager's Index (PMI) dropped to just 47.5, from September's 48.1. Anything below the neutral 50.0 mark is indicative of a contraction.
David Noble, ceo at the Chartered Institute of Purchasing & Supply, said there was little in the figures to encourage the industry.
He noted: "Where once it looked like high growth areas in Asia might offer opportunities to offset the acutely fragile situation in the Eurozone, it now looks like the global economic slowdown is stifling demand in Asia which is threatening to depress the manufacturing industry in the UK still further."
EEF chief economist Lee Hopley said that further weakening in Europe remained the big risk on the horizon and predicted that this would continue to drive caution across the sector.
