Despite modest rebound in production the latest Markit/CIPS Purchasing Managers’ Index® (PMI®) figure fell from 52.0 to 51.3 in June.
The data reports the lowest figure since September 2009. New orders fell for the second successive month and growth in new export orders was reported to be slow.
David Noble, CEO of CIPS, said, ““The UK’s manufacturing sector is slipping into ‘growth-lite’ mode, a far cry from the strong expansion seen earlier in the year.
“Manufacturers remain in cautious spirits as the global slowdown has been constraining export growth. Some are reducing inventories to protect precious cash flow, raising possible questions about their ability to raise output quickly should economic conditions improve. Job creation remains positive but has slowed in reaction to a second month of declining new orders.
“Of most concern looking ahead is how far problems such as domestic austerity measures, the Euro Zone debt crisis and monetary tightening in markets such as China may start to soften growth even further.”