Long-term UK borrowing costs at 28-year high as rising oil prices trigger global bond rout – business live– business live

Renewed fighting in Middle East weighs on financial markets; Shein shares tumble after Hong Kong stock market debut Adding to pressure on the UK’s new prime minister, activity growth in the manufacturing sector has slowed to the weakest since March, according to a closely-watched monthly survey.

In better news, hiring at factories picked up to the fastest pace in more than two years last month.

The rate of expansion in the UK manufacturing sector cooled in August, with output and new order growth losing traction.

There are still signs for continued optimism, however, as manufacturers reported a positive outlook for the year ahead.

Business confidence rose to a six-month high and job creation was the strongest for two years.

This suggests that the slowdown was mainly driven by a reduced focus on maintaining precautionary stocks as economic uncertainty eases, especially as domestic and overseas clients continue to show a willingness to spend albeit with a relatively high degree of caution.

Although cost and supply chain pressures remain potentially damaging, there was better news on these fronts too.

Volatility in energy markets, supply constraints, geopolitical strife and transportation disruptions are all keeping cost rises at elevated levels, but August at least saw purchase price inflation descend from recent peaks to a six-month low.

Supply chain delays were the least marked for six months too, which should provide additional respite to cost pressures barring any further major disruptions.

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