STAGNATING exports and weaker consumer spending have forced the UK manufacturing sector down to a three-month low, a report has revealed.
The sector was lacklustre in September, with fewer orders causing firms to cut jobs for the first time since April 2013.
The findings, announced in the Markit/CIPS purchasing managers’ index (PMI) showed new order growth dropped to its joint-weakest pace for a year.
The report delivered a reading of 51.5 for September, marginally down from August’s 51.6 and close to the 26-month low of 51.4 recorded in June.
Any figure above 50 separates growth from contraction.
Rob Dobson, senior economist at survey compilers Markit, said the manufacturing industry’s woes could mean a further delay in any interest rate rise.
He said: “The sector remained sluggish at the end of the third quarter, stunned by a triple combination of a sharp slowdown in consumer spending, weak business investment and stagnating export order inflows.
“The ongoing malaise will add to broader growth worries and supports calls for a first rise in interest rates to be held off until the industry returns to a firmer footing.
“The generally lacklustre operating environment encouraged firms to scale back employment for the first time in two-and-a-half years.
“Job cuts send a signal manufacturers are becoming more cautious about the future, which may lead to a further scaling back of production.”
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