UK manufacturing sector shows decline.

The British manufacturing market shrunk for the second month running in June due to the continuing effect of the eurozone economy crisis on exports.

A measurement of more than 50 on the Markit/CIPS report shows growth and UK manufacturing sat at 48.6 in June, although this is an improvement on May's mark of 45.9 and a little better than City predictions.

There were considerable drops in output levels in May which have since risen, but for the third month running new finances or business gains and demand from abroad both shrank in the midst of eurozone problems and growth difficulties in Asia and the USA.

Poor weather and the Queen's Jubilee weekend affected results in June. But the most recent research shows that the market's output is due to drop by 0.5% at least in quarter two of 2012 overall, according to Markit. Many fear this will help to extend the double-dip recession in Britain.

Low demand has meant workforce cuts for the second month running, and unless there are signs of a recovery soon there are likely to be further cuts, said CIPS chief executive David Noble

He said: "The effects of the eurozone crisis and global economic slowdown are making it a tricky time to build on exports."

Copyright Press Association 2012