Slowdown in UK manufacturing as weak pound raises costs

Markit/Cips UK manufacturing PMI shows activity fell to 55.9 last month as the cost of goods used in the production process rose

Britain's manufacturers are showing signs of a slowdown in growth, as the boost to exporters from the weak pound is offset by rising production costs and fears over Brexit.

Sterling's depreciation was widely expected to benefit manufacturers as their goods become more competitively priced for foreign buyers. However the cost of imported materials used in the production process has also risen, hitting a six-month high last month, according to a closely watched barometer of factory sentiment.

Related: Weak pound could boost manufacturing, if manufacturing itself wasn't so weak