UK Manufacturing slows to lowest point in a year

The EEF's new orders index suggested a weaker economic pickup than that of CIPS/Markit, edging up to -52 from a series low of -54 in Q1.

Moreover, the pace of decline in the PMI survey's new export orders accelerated in May with firms reporting lower demand from the United States, mainland Europe and Brazil, perhaps as a result of the pound's recent recovery on the foreign exchanges.

Cost pressures also eased markedly with the input price index hitting its lowest level in more than seven years.

The economy contracted at its fastest pace since 1979 in the first three months of the year but a raft of improving data in recent weeks has boosted hopes that the worst of the decline may be over.

The PMI survey noted that large-sized companies fared better than smaller firms while companies in the consumer sector fared better than those producing capital goods.

(With major contributions from Reuters)

(Additional reporting by David Milliken)

(Editing by Stephen Nisbet/Victoria Main)