More bad news for the economy

Share this article
Geoff Holt, who runs Wetwheels Solent

Federation reveals local firms on awards shortlist

Have your say

Britain’s economic hopes have been dealt another blow as a key survey revealed that the manufacturing sector contracted for the first time in two years last month.

The Markit Purchasing Managers’ Index recorded a level of 49.1 for July – a reading above 50 indicates growth – down from a revised reading of 51.4 in June. New orders fell for the third month in a row and at the fastest rate since May 2009 – reflecting low domestic demand, Markit said.

Economists said the results do not bode well for third-quarter growth prospects in the UK, after official figures revealed a slowdown in GDP growth from 0.5 per cent in the first quarter to 0.2 per cent between April and June.