Pound drops to nine-month low against dollar after PMI for December signals further contraction in manufacturing

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Manufacturers in the UK have cut back output at the fastest rate in 11 months, compounding the gloomy picture for the British economy, according to a closely watched survey.

The purchasing managers’ index (PMI) for manufacturing fell in December to 47, down from 48 in November – its weakest reading since February. Any reading below 50 signals a contraction.