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Worst slump for UK factories since 2012

Christian Fernsby |
Activity in the manufacturing sector is at its weakest for more than seven years.

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Topics: FACTORIES    UK   

The IHS Markit/CIPS Purchasing Managers' Index (PMI) for August showed contractions across the board from things like new orders to hiring as Brexit uncertainty and the wider world economic slowdown hit demand.

The authors of the report compiled through surveys said it suggested the industry was contracting on a quarterly basis by 2% in line with the latest official figures.

The PMI reports this week, later covering construction and services, are the first indicators on how the wider economy is performing since preliminary figures from the Office for National Statistics last month showed it had contracted for the first time since 2012 in the second quarter of the year.

If a negative growth figure was to be reported for the current quarter covering July to September, the economy would be in a technical recession.

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