Growth in the UK's manufacturing sector fell for the third month in a row to reach its lowest level in 13 months, according to the latest UK Chartered Institute of Purchasing and Supply (CIPS) manufacturing index. According to the CIPS, the manufacturing growth index was lower than expected, falling slightly to 48.6 in February from 48.7 in the previous month. A reading above 50 indicates that the manufacturing sector is generally expanding, while a reading below 50 suggests contraction. The employment sub-index dropped to 43.4 in February from 45.9 the previous month, showing that "staff cuts ... were recorded at their most severe rate since Dec 2001 and unfavourable economics conditions continued to weigh on order books in February," the CIPS said.
Turning to prices, manufacturers were able to raise their output prices last month for the first time since April 2001, according to the survey. The output price sub-index was 50.6 last month, up from 49.1 in January. The UK's performance contrasts with manufacturing activity in the eurozone generally, which expanded for the first time in six months in February, according to a survey also published this morning. The eurozone manufacturing sector purchasing-managers' index (PMI) rose to 50.1 in February from 49.3 in January. //www.fxcentre.com