UK manufacturing exports hit 10-month low

The Markit/CIPS UK manufacturing PMI (Purchasing Managers’ Index) − calculated from data on new orders, output, employment, supplier performance and stocks of purchases − dropped to 53.4 from 53.7 in August.

‘Furthermore, order book trend was the first drop in orders for investment goods since last November, contrasting with the 15-year high rate of growth seen in the spring,’ said Rob Dobson, senior economist at Markit and author of the UK Manufactruing PMI.

‘These orders correlate closely with official data on investment spending, for which a sharp upward revision in the second quarter had raised hopes for a more sustainable-looking recovery. The PMI therefore suggests that companies have become more cautious in terms of their capital spending.’

The PMI survey showed that growth of new orders remained subdued in September. It noted that, although the rate of increase accelerated slightly over the month, it was still well below average for the current 15-month period of improvement.