UK manufacturing industry output moved back into growth in June after a 1.3% fall the previous month, but its rise was smaller than economist predictions.
Data from the Office of National Statistics (ONS) show a 0.3%, raising concerns that the growth of the UK manufacturing sector could be slowing.
This was despite the UK’s industrial sector growing 1.2% over the last 12 months, and last week’s PMI reading showing the sector growing at its slowest pace in over a year with a reading of 55.4.
Investec Economics said in a statement the results pose raise discussion over the possibility of UK manufacturing heading for a more moderate growth path.
“The absence of a bigger rebound from May’s 1.3% monthly decline appears to have raised further questions about whether the UK manufacturing sector could be headed to a more moderate growth path,” it read.
Martin Beck, senior economic advisor to the Ernst & Young Item Club, told the BBC the growing strength of the pound is affecting exports so crucial to the industry.
“Admittedly, the ongoing strength of sterling presents an obstacle to export sales, as well as domestic firms competing with imports,” he said.
“But the strength of domestic demand should help in part to compensate for the weakness overseas. So the economy’s expansion will hopefully see more support from industry over the second half of the year.”