Factories fall-off is a blow to finances

BRITAIN’S manufacturers suffered a slowdown last month – raising fresh concerns about the health of the economy just days before the General Election.

The closely-watched purchasing managers’ index of activity in the sector, where scores above 50 show growth, fell from 54 in March to just 51.9 in April.

It was the biggest drop for more than two years and the weakest score for seven months.

The report, by Markit and the Chartered Institute of Procurement and Supply, blamed the ‘marked slowdown’ on weak demand for British-made goods from overseas. It warned that the strength of the pound against the euro – it has risen by around 20pc since last summer – was ‘hitting competitiveness in our largest trading partner’.

The findings fuelled fears about the recovery and sent sterling tumbling against the euro and the dollar. Official figures this week showed the economy grew by just 0.3pc in the first quarter of the year – half the 0.6pc rate of expansion seen in the previous quarter and the weakest performance since late 2012.

Rob Dobson, senior economist at Markit, said: ‘The investment and export pictures are subdued.

‘A slowing global economy and strong sterling-euro exchange rate are hurting the competitiveness of exporters.

‘A key challenge for the next government is to revive manufacturing and help it at least regain its pre-crisis peak.’

Separate figures from the Bank of England suggested families are splashing out once again, despite worries about the election.

Consumer borrowing on personal loans, overdrafts and credit cards surged by £1.2bn in March – the biggest increase since 2008.