UK manufacturing economy enters recession in August for the second time in three-and-a-half years.
The latest seasonally-adjusted Purchasing Managers’ Index (PMI – a composite indicator designed to provide an overall view of the manufacturing economy), published by the Chartered Institute of Purchasing and Supply (CIPS), fell from 47.0 in July to 46.4 in August. This was its lowest level since the beginning of 1999, signalling overall contraction of the UK manufacturing economy for the sixth consecutive month. Moreover, in line with the recognised definition of recession, the latest component data on output also signalled contraction for the sixth month running in August.
August Purchasing Managers’ Survey at a Glance
