The UK manufacturing sector activity expanded less than expected in March, the final report from IHS Markit confirmed on Friday. 

The seasonally adjusted IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) was revised lower from 55.5 to 55.2 in March, beating expectations of 55.5.

Key points          

New export orders contract for the second month running.

Inflationary pressures strengthen.

Rob Dobson, Director at S&P Global, commented on the survey

“March saw a marked growth slowdown in the UK manufacturing sector, with rates of expansion for production and new orders both easing and new export business suffering back-to-back declines. The slowdown in consumer goods output was especially marked.”

GBP/USD reaction

At the press time, GBP/USD is trading under pressure at around 1.3120, down 0.08% on the day.