By Suban Abdulla
LONDON (Reuters) – British factory activity contracted last month at the slowest pace since July and 60% of manufacturers expect output to rise in the coming 12 months, reflecting cooling inflation pressure, a survey showed on Wednesday.
The S&P Global/CIPS UK monthly manufacturing Purchasing Managers’ Index (PMI) rose to 49.3 in February from 47.0 in the previous month, still below the 50 threshold for growth.
Provisional “flash” PMI data published last week had pointed to a slightly smaller rise to 49.2.
Some indicators of Britain’s economic prospects – especially in the services sector – have improved unexpectedly over the last month or so, reducing the threat of a deep and lengthy downturn.
For now though, conditions remain challenging for manufacturers.
New orders contracted for the ninth month, reflecting the hit from the cost of living crisis and weak demand from…
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