Pound New Zealand Dollar (GBP/NZD) Exchange Rate Flat as UK Manufacturing ‘Heading for Recession’

The Pound New Zealand Dollar (GBP/NZD) exchange rate was left flat today, with the pairing currently trading at around NZ$2.0175.

On Friday, data revealed that Brexit uncertainty and gloomy predictions for the UK economy continue to weigh on the UK manufacturing sector, leaving the sector’s PMI in contraction territory for the second successive month.

However, the data was collected before the UK accepted a Brexit ‘flextension’ from the EU and came before a December general election was announced.

Commenting on this morning’s data, Group Director at the Chartered Institute of Procurement and Supply, Duncan Brock said:

‘A minor uplift in overall purchasing activity did little to ease the agony for manufacturing companies in October as the sector remained submerged in contraction territory and heading for a recession. Business was still restrained by the Brexit leash, as firms were subjected to the struggle against client indecision and also the down pull of a slowing global economy.

‘Naturally this had a heavy impact on job creation as manufacturing firms cut jobs for the seventh month in a row and at one of the fastest rates for a decade. Companies have lost faith in their ability to weather the ongoing storms, reining back spending where they can. As the manufacturing sector remains in the twilight zone, wondering whether to stock or de-stock, hire new staff, look for business or batten the hatches once again, it looks like a scary end to the year.’

This article originally appeared on FutureCurrencyForecast.com