LONDON, August 1 (Xinhua) -- British manufacturing purchasing managers' index (PMI) remained at 48.0 in July, unchanged from June, showing that the sector suffered the ongoing headwinds of Brexit uncertainty and a global economic slowdown.
The reading suggested that the PMI stayed below the 50.0 neutral benchmarks for the third running month, hitting a six-and-half year low.
According to IHS Markit, which compiled the survey, production dropped to the greatest extent in seven years, with weak demand from domestic and overseas markets.
The survey showed the sluggish orders were partly due to some clients transforming supply chains away from Britain in advance of Brexit deadline.
"July saw the UK manufacturing sector suffocating under the choke-hold of slower global economic growth, political uncertainty and the unwinding of earlier Brexit stockpiling activity," said Rob Dobson, Director at IHS Markit.
"Production volumes fell at the fastest pace in seven years as clients delayed, cancelled or re-routed orders away from the UK, leading to a further decline in new work intakes from both domestic and overseas markets," Dobson added.
Duncan Brock, Group Director at the Chartered Institute of Procurement and Supply, said "a killer combination of economic uncertainty and the weakest production levels for seven years, battered the manufacturing sector into contraction for the third consecutive month in July."
"New orders fell as businesses used up stockpiled materials, EU businesses moved supply chains out of the UK and weakness in the global economy stifled demand from both domestic and export markets," Brock added.
