That, according to the firm, signals a 0.4 percent quarterly contraction in the third sector.
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“Manufacturing has never been more important to the success and growth of the British economy, and the potential development of an industrial strategy could prove significant in providing additional support to the supply chain”, he said.
Some overall demand had been relatively resilient in July, especially for house building and infrastructure projects and there were also reports suggesting that demand patterns had been more resilient than expected, with some firms linking new enquiries from worldwide clients to exchange rate depreciation. This number is not surprising given a lot of uncertainty surrounding the health of the United Kingdom economy in the wake of that country’s decision to leave the European Union.
It said the fall in manufacturing production was its steepest since October 2012, while employment across the industry dropped for the seventh straight month. The figure matched a preliminary estimate published late July.
China’s manufacturing sector reported a slight contraction last month.
The Bank of England meets on Thursday and is widely expected to cut rates to help the economy in the wake of the referendum vote.
An index, by Markit, of the manufacturing industry, a month by month study, indicated a fall to 48.2 in July down from 52.5 in June, when it was assumed the electorate would choose to remain part of the European project, obviously that turned out to be false and the United Kingdom economy is still coming to terms with the consequences of this choice.
The surveys are based on replies to questionnaires sent to purchasing executives and they are seen as one of the earliest indicators of the economy’s performance.
The latest reading signalled the fastest overall decline in construction output since June 2009 following the steepest fall in commercial building for over six-and-a-half years and a drop in civil engineering activity for the first time in 2016.
A report from influential think-tank the National Institute of Economic and Social Research (NIESR), also out on Wednesday, warned there was a 50/50 chance of a recession over the next 18 months.
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Investment goods manufacturers also saw a moderate decrease in new work received during July, although this partly reflected some payback from June’s marked increase. A 0.6% drop in public construction projects also led to the overall decline that includes a 1.4% drop in highway construction.
