MANUFACTURERS feeling the pinch from a strong pound were under pressure even before this week's slump in the value of the dollar, figures have shown

The latest blow came from the Chartered Institute of Purchasing and Supply (CIPS), as its activity index for last month came in below the average for the year.

Slower order growth and a further reduction in outstanding business were reported by CIPS, with last month's index falling to 52.6 from October's 53.5.

A figure above 50 represents growth in activity, so the figure still indicates a solid rate of expansion for the sector.

As well as weaker growthlast month, the data showed firms were less willing to raise prices to rebuild margins.

The report also highlighted declining job levels and some redundancies, as the CIPS employment index fell to 47.6 - its lowest reading since January.