The manufacturing sector is struggling to kick back into growth, according to a new survey.

Manufacturing output hit a three-month low in August, a new survey has suggested, after early signs in the summer indicated the sector was on a path to recovery.

The Labour government is determined to deliver higher growth, with strategy papers outlining plans to boost production across the UK by lowering energy costs.

But new purchasing managers’ index (PMI) data published by S&P Global has pointed to a downturn in the manufacturing sector as it faces higher costs on payroll budgets and in raw materials.

The survey showed that firms had seen output levels fall below levels seen in June and July as a reading of 47, which is below the 50-figure mark for neutrality, disappointed economists.

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