Policymakers to hold interest rates but cut economic growth forecasts amid fears of a cliff-edge Brexit * Sterling sinks to 2 1/2 year low on stronger dollar and Brexit fears 9.11am BST The headline manufacturing index has signalled a contraction in the eurozone for six months in a row. The reading of 46.5 pointed to the sharpest deterioration in operating conditions since December 2012, IHS Markit said. Factory output and orders are both down markedly as confidence hit its lowest level since December 2012. Firms are also hiring less, with employment recording its sharpest reduction in more than six years. Germany remained a source of weakness, with its manufacturing economy recording its sharpest deterioration in operating conditions for seven years. Austria recorded its lowest PMI level in just under five years, whilst there were also below 50.0 readings seen in France, Ireland, Italy and Spain. In contrast, the Netherlands and Greece continued to expand, although growth in the former was only marginal and unmoved on June’s six-year low. 9.06am BST In the eurozone as a whole, the manufacturing sector is declining at the fastest pace since the end of 2012, according to the closely-watched purchasing managers’ index from IHS Markit. Eurozone Manufacturing PMI ⬇️ to 46.5 in July (June - 47.6), signalling the quickest decline in the region's manufacturing sector since the end of 2012. Contractions were recorded in the intermediate and investment goods sectors. Read more here: https://t.co/CRP8FWBQ27 pic.twitter.com/kidvKnBhEt Continue reading...
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