UK manufacturing activity growth slows more than forecast in November

UK manufacturing activity growth slowed more than expected in November, data from Markit/CIPS revealed.

The purchasing managers’ index fell to 52.7 last month from October’s 16-month high of 55.2, missing analysts’ forecasts for a reading of 53.6.

A reading above 50 signals an expansion in the sector while a level below that indicates a contraction.

The decline was driven by a drop in average input costs and factory gate selling prices. Lower input costs were due to falling global commodity prices.

The report added that the rate of deflation in purchasing costs remained among the fastest seen since the survey began almost 24 years ago.

“If this mix of subdued growth and weak price pressures is reflected in other sections of the economy, the Bank of England will have further cause to push any potential rate increase into the spring of 2016,” said Rob Dobson, senior economist at Rob Dobson.