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Manufacturing figures are 'truly terrible'
Page 47
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WARNINGS THAT THE UK manufacturing industry might be heading for recession emerged in July with the latest Purchasing Managers' Index Report from the Chartered Industry of Purchasing and Supply (GIPS) showing a fall to 45.5.
With any figure below 50 indicating contraction, the May reading had just dipped below the waterline at 49.5. Economists have been quoted as saying the June statistics produced a "truly terrible report".
Those hoping that the recent weakening of the pound sterling would help UK manufacturing will be disappointed.
The Bank of England is unlikely to cut interest rates again in the face of strong inflationary pressure but, as the services sector shows signs of weakening, it might at least be deterred from raising them for fear of pushing the economy further towards recession.