Negative report from UK manufacturing industry sees Ftse fall

London’s top flight index tumbled below 6,700 yesterday as investors baulked at a bleak economic update from the UK manufacturing industry.

The Ftse 100 slipped 30.5 points to 6,693.95 after the manufacturing sector, which accounts for around 10% of the UK economy, endured its sharpest fall for more than three years.

The closely watched Markit/ CIPS UK Manufacturing purchasing managers’ index fell to levels last seen in February 2013, as it hit 48.2 in July, down from 52.4 in June and below economists’ expectations of 49.1. A reading above 50 indicates growth.