UK manufacturing continues to decline

<p>British manufacturing has slipped again, according to fresh data for October.</p>

British manufacturing has continued to decline over the course of October, with fresh data indicating the sector is suffering from high costs and dwindling orders.

The Markit/Cips purchasing managers index (PMI) recorded last month's output as 47.5, which is lower than September's 48.1.

PMIs work in such a way that readings higher than the benchmark of 50 indicate expansion, while those under this figure mean contraction.

Therefore, this latest PMI shows that the British factory sector declined more rapidly in October than in September, with this being the lowest reading for four months.

Although the rate of job losses for the industry was less marked, where reduction was reported, it reflected lower demand and redundancies.

"There is little in last month's figures to encourage the industry," said chief executive officer at Cips David Noble.

At 12:20 GMT today (November 1st), the FTSE 100 was higher by 0.6 per cent to 5820.8 points.

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