British manufacturing failed to expand for the first time in five months in September, official data showed today.
Sterling fell against the dollar and euro after the data, but economists said the weak reading will not alter expectations of higher interest rates this week as the Bank of England seeks to tackle above-target inflation.
The wider gauge of industrial activity also came in weaker than expected, rising by just 0.2 per cent month-on-month and by 0.5 per cent on the year, according to the Office for National Statistics (ONS).
Analysts had predicted a 0.3 per cent monthly rise and a 0.6 per cent annual increase.
That meant output in the three months to September was just 0.1 per cent higher than the previous quarter, which the ONS said could shave 0.04 percentage points off the 0.7 per cent first estimate of growth in third-quarter GDP.
The second estimate of third-quarter GDP is due on November 24th.