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UK manufacturing registers longest contractionary spell in 10 years

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UK manufacturing registers longest contractionary spell in 10 years

The U.K.'s manufacturing downturn continued in September as new orders, output and employment declined amid continued Brexit uncertainty, data from IHS Markit and the Chartered Institute of Procurement & Supply showed.

The purchasing managers' index rose to a four-month high of 48.3 from August's six-and-a-half-year low of 47.4, but remained below the neutral 50.0 mark for the fifth month in a row, which is the longest contractionary spell in 10 years.

The latest print exceeded the Econoday consensus estimate of 47.0. Readings above 50 indicate growth while less than 50 reflect contraction.

The investment goods sector led the slowdown in production, and the consumer goods sector was the only category to register a rise in output. The intermediate goods industry's production remained static.

Staffing fell at the fastest pace since February 2013. Some companies reported increased inventory building activity for the first time in recent months, in preparation for the U.K.'s departure from the EU on Oct. 31.

Business sentiment improved from August's record low reading, but remained subdued amid ongoing political, trade and economic uncertainties.