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Great Britain: the latest IHS Markit report showed that the decline in activity in the manufacturing sector continued in August. Seasonally adjusted, the IHS Markit Purchasing Managers Index (PMI) fell in August to seven-year lows of 47.4 points from the expected 48.4 points and 48.0 points in July. New orders arrive at the slowest pace in seven years. Business confidence fell to a record low. "High levels of economic and political uncertainty, along with continued tensions in international trade, stifled British producers in August. Business conditions have deteriorated as much as possible over the past seven years, as companies cut production in response to the sharpest drop in new orders since mid-2012. The latest PMI indicates a quarterly decline in GDP close to 2%. The prospects have worsened," commented Rob Dobson, director of IHS Markit.
Horrible activity indicators in the manufacturing sector of the UK strengthen the bearish sentiment around the pound. The pound dropped to nine-day lows of $1.2094. The currency is also under pressure from uncertainty about Brexit due to the growing risks of a new referendum. Conservative party member David Gauke said MPs will be able to block the hard Brexit. Meanwhile, his party counterpart, Prime Minister Boris Johnson, threatened to "expel the rebels" from the party if they did not support him in a key vote on Brexit on Tuesday.
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