British factories grew more slowly than expected in June as export orders rose at the weakest pace in five months, according to a survey on Monday that might disappoint Bank of England officials who favor raising interest rates.
Sterling, which jumped last week on expectations of a BoE shift towards higher borrowing costs, fell after the Markit/CIPS UK Manufacturing Purchasing Managers’ Index(PMI) slipped to 54.3 from a downwardly revised 56.3 in May, a three-month low.
The reading was below all forecasts in a Reuters poll of economists that had pointed to a reading of 56.5.
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