Fresh signs of falling demand and job cuts in Britain’s manufacturing sector have raised pressure on the Bank of England to soothe post-referendum jitters with an interest rate cut this week. That overshadowed a boost to export orders from a weaker pound, which makes UK goods cheaper. In the UK, manufacturers were already shedding jobs before the referendum and the PMI report showed employment fell for the seventh month running in July. The UK reading was much weaker than Markit’s PMI index of eurozone manufacturers. News that the decline in manufacturing activity last month was steeper than first thought echoed other reports of a hit to business and consumer confidence from the Brexit vote and sparked fresh calls for government action to shore up economic growth.

Source: The Guardian August 01, 2016 10:23 UTC