Manufacturing suffers as PMI drops to a 16-month low

The climate in manufacturing slumped to a new 16-month low in January, as the Purchasing Managers Index compiled by Markit showed on Wednesday a decline to 46.6 points from 49.3 points in December 2016.

The prolonged recession in the sector - a result of the strong decline in output and new orders - has led companies to reduce employee numbers.

In its analysis Markit further noted that last month the sector witnessed 'the strongest cost growth rate recorded in the last 70 months.'

Separately, the Economic Sentiment Index compiled by the Foundation for Economic and Industrial Research (IOBE) remained stable at 95.1 points last month.