UK factories struggle to boost output

Manufacturing sector scales back recruitment and investment as strong pound dents export demand

Worries about the unbalanced nature of Britain's economic recovery intensified on Monday after news that UK factories struggled to crank up output in May amid flagging overseas demand.

After a sharp slowdown for the UK economy at the start of the year, analysts hope growth has bounced back in recent months. But the latest news from manufacturers suggested the sector was being left behind in any turnaround despite the government's ambitions to rebalance the economy towards more production and exports.

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