Growth in UK manufacturing has stalled as new orders declined for the second consecutive month and export sales waned, prompting concerns about the economic recovery.

Growth in UK manufacturing has stalled as new orders declined for the second consecutive month and export sales waned, prompting concerns about the economic recovery.

The Markit/CIPS Manufacturing purchasing managers’ index (PMI) dropped to 51.3 in June, from 52 in May and the lowest reading since September 2009.

The latest figures show that the UK’s manufacturing sector is in decline following strong growth at the start of the year.

David Noble, chief executive at the Chartered Institute of Purchasing and Supply (CIPS), warns that the sector is ‘slipping into “growth-lite” mode’.

The reduced inflow of new orders reflects the ongoing weakness of domestic demand, and a ‘worrying near stagnation’ of new export orders, according to a statement from Markit.

The output component of the PMI reveals an increase in production compared to May, although it remains at a low level.

Growth in Eurozone manufacturing also took a hit in June, falling to an 18-month low of 52, down from 54.6 in the previous month.

The broad-based national slowdown saw Italy and Ireland join Spain and Greece in contraction territory.

Chris Williamson, chief economist at data specialist Markit, says Eurozone manufacturers had been the ‘driving momentum’ behind the region’s recovery.

‘Over the past two months, output growth has weakened to the greatest extent since late 2008. This reflects a combination of lacklustre domestic demand in many countries, especially the austerity-hit periphery, as well as a near-stagnation of export sales.’