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| UK manufacturing suffers shock contraction | UK manufacturing suffers shock contraction |
| (34 minutes later) | |
| Activity in the UK's manufacturing sector unexpectedly shrank in February, according to a closely watched survey. | Activity in the UK's manufacturing sector unexpectedly shrank in February, according to a closely watched survey. |
| The Markit/CIPS purchasing managers' index (PMI) for manufacturing fell to 47.9 last month, from a downwardly revised 50.5 in January. | The Markit/CIPS purchasing managers' index (PMI) for manufacturing fell to 47.9 last month, from a downwardly revised 50.5 in January. |
| It was the first reading below 50 - which indicates contraction - since November. | It was the first reading below 50 - which indicates contraction - since November. |
| The figures could mean that the sector will act as a drag on the economy in the first quarter. | |
| "The return to contraction of the manufacturing sector is a big surprise and represents a major setback to hopes that the UK economy can return to growth in the first quarter and may avoid a triple-dip recession," said Chris Williamson, chief economist at Markit. | |
| Both output and new orders fell in February, Markit said, while purchasing activity was also cut markedly as manufacturers continued to show a preference for holding less stock. | |
| Staffing levels in the sector dropped at their quickest pace in more than three years. | |
| But Mr Williamson added that there were good reasons to believe that manufacturing might pick up again in March. | |
| February's figures suffered a knock-on effect from the bad weather at the end of January, and were also hit by a stronger-than-usual effect on global trade flows from the Chinese New Year holidays. The weaker pound may also help British exporters in the coming months, he said. | |
| The manufacturing sector accounts for 10.5% of the UK economic output, according to the Office for National Statistics (ONS). |