U.K. PMI Manufacturing Contracts For Third Month

Daily Forex Fundamentals | Written by DailyFX | Aug 01 08 09:38 GMT |

The U.K.PMI Manufacturing gauge fell to 44.3 in July from 45.9, which was the lowest in a decade. It was the third consecutive month the measurement fell below the 50 boom/bust level and provides further evidence the British economy is heading for a recession. After closer inspection of the breakdown, we see that new orders fell to 40.5 from 43.7 signaling that further weakness in the sector is forthcoming. The sector also showed employment slipping to 43.3 from 46.2 which will further weigh on the U.K. labor market which saw jobless claims rise by 15,500 in June. The BoE will be hard pressed to raise rates at their upcoming policy meeting, despite the efforts of hawk Tim Besley to convince his fellow committee members that price stability should be their focus. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.