UK Industrial Output Records Steepest 7-Month Decline, Alleviating Cost Pressures

U.K. industrial output shrank at the fastest pace in seven months in July, hit by rising interest rates and a drop in new orders, despite subdued price pressures, U.K. PMI data showed.

The UK manufacturing PMI recorded 45.3 in July, the 12th consecutive month below the 50 line.

Demand continued to slow in July, with new domestic orders falling for the fourth straight month and the biggest drop since December.

Overseas orders shrank by the most since November last year.

Rob Dobson, director of S&P Global Market Intelligence, said domestic and export demand are weakening and the backlog of jobs is shrinking sharply, all of which could point to further declines in production, employment and purchases in the coming months.