New fears were cast over the strength of the economic recovery today as the latest manufacturing survey showed growth fell to its lowest rate for 21 months in June.
A decline in new orders was sparked by weakening domestic demand while the much-heralded increase in exports appeared to waning.
Markit, a partner in the survey with Cips, said growth was "stalling” with their monthly purchasing managers' index (PMI) falling to 51.3 in June, down from May's downwardly revised measure of 52. A figure above 50 indicates expansion.
Rob Dobson, senior economist at Markit, told the BBC: "The manufacturing sector continued to slip closer to stagnation in June.
"The data will call into question the sector's ability to play a major role in delivering a robust and sustainable economic recovery."
The rate at which companies were hiring staff slowed, and new orders fell for the second month in a row, Markit found.
The Government has trumpeted the recent growth in manufacturing, with ministers saying the sector could lead the economy into a strong recovery. The slowdown comes as retail sales remain under extreme pressure with casualties among high street operators occurring on an almost-daily basis.
