UK factory growth is slower than in eurozone

BRITAIN’S struggling factories are growing at a slower pace than rivals in the eurozone and have laid off staff for the first time in more than two years.

The purchasing managers’ index of activity in UK manufacturing – where scores above 50 show growth – dipped from a weak 51.6 in August to 51.5 in September.

That put it below the eurozone score of 52, with Britain behind Ireland, Holland, Italy, Austria, Germany and Spain.

Only French and Greek factories fared worse than the UK, says the survey by research group Markit.

The report also showed that the number of people employed in British factories fell for the first time since April 2013.

Rob Dobson, senior economist at Markit, said: ‘Job cuts send a signal that manufacturers are becoming more cautious about the future which may lead to a further scaling back of production at some firms.’

Official figures this week showed UK manufacturing output fell 0.5pc in the second quarter of the year.