Faltering factories make an interest rate rise less likely

Fears that Britain’s economy may be faltering have been fuelled by a second disappointing set of figures in only four days. Factory activity fell in March by a full point to 53.9 on the purchasing managers’ index, a 17-month low and far short of forecasts for 54.8. Economists said that the reading, produced by IHS Markit and the Chartered Institute of Purchasing and Supply, suggested that the recovery in manufacturing was running out of steam. Last Friday’s GDP data, which showed that the economy had expanded by only 0.1% in the three months to March, against forecasts of 0.3%, convinced many economists to scrap their prediction of a rate rise this month. That decision was reinforced by yesterday’s data. Click here for the full Times article (£)