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Manufacturing

Weak manufacturing figures pull London markets lower

"Traders had gotten used to the idea that manufacturing in Europe is weak, but the disappointing US ISM manufacturing report sent the message home it is a worldwide problem."

The London markets slid lower as Europe and the US were both struck by weak manufacturing data.

The FTSE 100 closed 47.89 points lower at 7,360.32 at the end of trading on Tuesday.

Traders were left unimpressed after it was revealed that the º£½ÇÊÓÆµ manufacturing sector shrank for the fifth month in a row, the worst run since 2009, according to new figures.

David Madden, market analyst at CMC Markets º£½ÇÊÓÆµ, said: "Concerns about the health of the global manufacturing sector has hit stocks hard today.

"Traders had gotten used to the idea that manufacturing in Europe is weak, but the disappointing US ISM manufacturing report sent the message home it is a worldwide problem.

"The US manufacturing report dropped to a 10-year low, which sparked a flurry of selling in Europe as well as the US."

Eurozone markets fared worse than the FTSE, sliding heavily as Spain, Italy and Germany all reported negative growth in their manufacturing sectors.

The German Dax decreased by 1.32% while the French Cac moved 1.41% lower.