The UK's fragile manufacturing sector was stagnant last month as firms battled the economic gloom, according to a report.

A fall in production growth as companies cut costs to cope with weak markets meant manufacturers suffered their weakest month since July.

The Chartered Institute of Purchasing and Supply Managers (CIPS) said its activity index fell to 50.0 - meaning the sector effectively stagnated.

On the CIPS scale, a figure above 50 illustrates an expansion while one below this level signals an outright contraction.

CIPS director Roy Ayliffe said that firms had enjoyed cheaper raw material prices and there were signs that demand was creeping up. The new orders index rose to 52.1 in November from 51.3 in October as strong domestic demand offset weakness overseas.

But he said that overall, activity in the sector was only likely to "bump around" at the current levels for some time.