July 3, 2017 / 8:48 AM / 2 years ago

Sterling dips after weak UK manufacturing data

FILE PHOTO: An employee is seen walking over a mosaic of pound sterling symbols set in the floor of the front hall of the Bank of England in London, March 25, 2008. REUTERS/Luke MacGregor/File Photo

LONDON (Reuters) - Sterling dipped against the dollar and euro on Monday, after data showed British factory activity grew more slowly than expected in June as export orders rose at the weakest pace in five months.

In a purchasing managers’ index (PMI) for the manufacturing sector that could make Bank of England officials think twice about raising interest rates, activity fell to 54.3 from a downwardly revised 56.3 in May. That was a three-month low and below all forecasts in a Reuters poll. [nL9N1BR00R]

Sterling dipped to the day’s low of $1.2970, down from $1.2987 just before the data release and having traded above $1.30 half an hour earlier.

Against the euro, it dipped to 87.74 pence, having earlier hit a 10-day high of 87.565 pence.

Britain’s main shares index shrugged off the data, trading broadly unchanged, up 0.5 percent, while mid-caps held on to their 0.2 percent gains.

Gilts were little changed.

Reporting by Jemima Kelly; Additional reporting by Helen Reid and William Schomberg, editing by Nigel Stephenson

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