British manufacturing activity expanded at the weakest pace in three months in September, survey figures from the Chartered Institute of Procurement & Supply and Markit Economics showed Thursday.
The seasonally adjusted Purchasing Managers’ Index , or PMI, fell slightly to 51.5 in September from 51.6 in August, which was revised up from 51.5.
Economists had forecast the index to fall to 51.3. However, any reading above 50 indicates expansion in the sector.
Output expanded at the fastest pace in six months in September, but still well off the peaks seen during the opening quarter. At the same time, growth in new orders slipped to the joint-weakest pace in a year.
Manufacturers reduced their staffing levels for the first time since April 2013, though only marginal.
On the price front, input prices declined further in September to the steepest level since February 2009, due to lower raw materials, especially oil and oil-related costs.
Selling prices dropped for the first time in three months in September, reflecting competitive pressure and some pass-through of lower input costs to clients.
“The ongoing malaise of the manufacturing sector will add to broader growth worries and supports dovish calls for a first rise in interest rates to be held off until industry returns to a firmer footing,” Rob Dobson, a senior economist at Markit, said.
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