Thursday, September 01, 2011
Manufacturing PMI disappoints, house prices slip
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

After an upbeat CBI manufacturing survey last week, there were high hopes for the purchasing managers index this week, but it disappointed, slipping from 49.4 in July to 49 in August, consistent with a decline in output in the sector.

There was not a lot of good news in the detail. This from Markit: "Business conditions in the UK manufacturing sector deteriorated further in August. Production fell for the first time since May 2009, as new order inflows declined at the most marked pace in almost two-and-a-half years. The trend in new export business was also substantially weaker than one month ago.

"At 49.0 in August, from a revised reading of 49.4 in July, the seasonally adjusted Markit/CIPS UK Manufacturing Purchasing Managersí Index posted its lowest reading for 26 months."

The Nationwide said that house prices fell by 0.6% in August and fell by 0.4% on a year earlier. In nominal terms they are just under 10% below their 2007 peak. More here.