Manufacturing sector hit by macro concerns

The manufacturing sector is starting to look more attractive on a valuation basis but concerns remain over the macro outlook. While hopes of a second half recovery are all but a distant memory as profits warnings abound, fears regarding the likely war in Iraq are helping to drive prices down. Chris Tracey, investment director at JP Morgan Fleming, says although economic data is not as bad as feared, with jobless claims, home sales and durable goods orders reports showing some signs of improvement, consumer confidence fell to a 10-month low in September, signalling economic weakne...