Output in the manufacturing sector slowed in September, according to the seasonally adjusted CIPS/Markit UK Manufacturing Purchasing Managers’ Index (PMI).

The index recorded a reading of 49.5 in September, down from 49.7 in August and below the neutral 50.0 mark for the second month running.

New orders did increase for the third month in a row in September, but to a lesser extent than in previous months. New export business grew at a faster rate than in August, supported by improving overseas market conditions and a weaker pound.

Job losses were recorded for a 17th month in row centred around large-sized manufacturers, while employment was broadly unchanged at small companies.

David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, says:  “The latest data will disappoint those hoping for a quick economic recovery. However, it must be remembered that after hitting an unprecedented low in November last year, we have seen the manufacturing industry make a significant rebound.

“Total new orders increased for the third successive month in September, output for a fourth month running and new export business rose at a faster rate than in August. But we are now seeing the sector bump along through the recovery phase, as some of the momentum inevitably wanes.”