The downturn in the UK manufacturing sector gathered pace at the start of Q3 2012. At 45.4 in July, down from a revised reading of 48.4 in June, the seasonally adjusted Markit/CIPS Purchasing Manager’s Index® (PMI®) fell to its lowest level since May 2009. Operating conditions have deteriorated in each of the past three months. Output and new orders both contracted sharply during July, as companies faced weaker demand from domestic and export clients. The decline in production was the steepest for 40 months, with contractions recorded in both the intermediate and investment goods sectors. In contrast, output rose ... (full story)