UK July manufacturing sector activity stuck at six-and-a-half year low

UK manufacturing activity continued to shrink at a steady pace last month as firms coped with a myriad of uncertainties against the backdrop of slowed economic growth worldwide, the results of one of the most closely-followed surveys for the sector revealed.

IHS Markit's UK factory sector Purchasing Managers' Index was unchanged from the month before at 48.0 - a six-and-a-half year low.

That was nevertheless a smidgen better than the dip to 47.8 that economists had penciled-in.

According to the survey compiler, factory output declined at its quickest pace for seven years on the back of another "solid" drop in order intakes as demand weakened both at home and overseas.

In the case of the latter, declines in new export orders from the People's Republic of China and the European Union accounted for the bulk of the declines.

Weighing on activity in manufacturing were uncertainties around politics, trade tensions and Brexit - on top of lower growth around the globe, IHS Markit said.

Hiring continued to slump as a result.

"Companies also noted that some clients were routing supply chains away from the UK in advance of Brexit."

-- More to follow --