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(CEP News) Frankfurt - On Tuesday, Markit Economics reported that the UK's manufacturing purchasing managers index fell to 45.8 in June, its lowest reading since December 2001. Economists had expected an improvement in June with the PMI figure rising to 49.8 after falling to 49.5 in the previous month. May's reading was revised down from an initial figure of 50.0.
Declines were noted in most of the categories of the PMI. The most notable drops were seen in output, falling from 49.2 to 43.5 in June, and new orders, which slipped to 43.2 from 47.5. On the other hand, both input and output prices rose in June. The input prices component of the indicator jumped to 82.1 from May's 76.9 reading, while output prices saw a gain, rising to 62.6 from 62.0. Delivery times also saw an increased, going from 44.4 to 45.1. "The industry is facing strong pressures on its cost while the demand is condemned to decrease, at least in the short term," a Natixis research note said. "If the PMI services, to be published at the end of this week, show the same trend, the slowdown of the UK economy could be more pronounced than what was initially expected." By Todd Wailoo,
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