Slowdown in growth of manufacturing sparks fear for future

While activity rose for a fifth straight month, it was the weakest month-on-month rate since April, according to the Office for National Statistics (ONS).

The year-on-year increase slowed to 4.8 per cent in September from a near 16-year high of 6.1 per cent a month earlier.

The wider measure of industrial production, which includes manufacturing, mining and quarrying, grew 0.4 per cent on the month and 3.8 per cent on the year.

Other surveys in recent weeks have offered some hope that the industrial sector will continue to support the overall economy. The Chartered Institute of Purchasing and Supply's activity index, where a reading over 50 indicates growth, rose to 54.9 in October.

But economists said the ONS data raised a question mark over whether the sector could support the recovery as the economy feels the impact of western governments' austerity drives.

Vicky Redwood, senior UK economist at Capital Economics, said: "The latest UK data suggests that the industrial recovery, while still fairly healthy, has lost some pace."

Howard Archer, chief European and UK economist at IHS Global Insight, said the slowdown in the overall rate of manufacturing output "fuels suspicion" that the sector will come under increasing pressure.

He said a winding down of stock-rebuilding, tighter fiscal policy and slower global growth hitting foreign demand for UK products would all impact on the recovery.

Separate ONS data showed the UK trade deficit - when imports exceed exports - narrowed slightly in September.

The UK's seasonally adjusted deficit on trade in goods and services was 4.6 billion for the month, compared with 4.9bn in August.