UK manufacturing grew at its slowest pace for seven months in April, according to new figures.
The Markit/CIPS manufacturing PMI headline index fell to 54.6 in April, its lowest since September. This was from a downwardly revised 56.7 in March.
Figures above 50 show expansion.
Although the output prices index eased to 64.2 in April from a record 65.2 in March, the inflation rate was still the third highest since the data were first collected in 1999.
The figures underline the Bank of England's plight as it struggles to tame inflation running at double its 2%, while trying to protect Britain's fragile recovery.
David Page, economist at Lloyds Bank, said: "Obviously this is much much weaker than expected. It's concerning that the weakness in the index is coming through from
the orders and output side.
"It looks like a genuine slowdown in Q2 manufacturing.
"Given that's the bright spot on the economy at the moment this does suggest we are going to see a soft Q2 as well as a subdued Q1."
Mark Lee, head of manufacturing at Barclays Corporate, said:"The manufacturing sector has experienced an unexpectedly strong first quarter, which saw a spike in restocking, cementing the fact the industry is 'back in business'.
"Despite a fall in the April PMI figures, the manufacturing recovery remains on track with the figures showing growth for the past 21 months.
"The headwind now facing manufacturers, as we enter the new tax year, will be the fiscal changes impacting household spending and the prospect of impending interest rate hikes.
"What manufacturers now need is a steady and sustainable recovery and that certainly remains evident within our client base."
Manufacturing has been one of the healthiest sectors of the UK economy since Britain emerged from a recession late in 2009.
The sector, which accounts for about 13% of the British economy, grew 1.1pc in the first quarter, according to official data, helped by a weaker pound and strong export demand.
There are no comments yet