Britain’s manufacturing growth slowed to well below that of the wide EU figure in June, in the latest sign that the UK economy is faltering.
The UK manufacturing PMI dropped to 54.3 in June, its lowest figure in three months and well below expectations of a reading of 56.5. Any figure over 50 represents growth, signalling British factory output is still growing but at a slower rate than initially expected.
Howard Archer, Chief Economic Advisor to the EY ITEM Club, commented:
“The survey indicates that not only did output slow in June, but the sector is entering the third quarter with reduced momentum with new orders at an 11-month low. This was primarily due to weaker domestic demand, but it is disappointing to see that export orders slowed.
The slowdown in manufacturing activity is reported across consumer, intermediate and investment sectors. In another disappointment, the figure for May also saw a substantial downwards revision from 56.7 to 56.3.
In comparison the Eurozone saw a boost in its manufacturing sector, led by strong figures in Germany, France, Italy and Spain. Markit’s eurozone manufacturing PMI hit 57.4 in June, up from May’s 57.0.
Eurozone unemployment rate lowest since March 2009
In another set of figures showing strong growth in the wider European economy, the jobless rate across the eurozone remains at its lowest level since the financial crisis began.
Unemployment in the single currency region was 9.3 percent in May, matching April’s figure which was the lowest since March 2009.