The Chartered Institute of Purchasing & Supply, which tracks Britain's Purchasing Manager's Index, said the PMI for July was 57.3, a drop from June's 57.6, but still in positive territory. Numbers above 50 indicate growth.
July showed the slowest growth rate of the past five months, however, "both production and new work received in July … encouraged manufacturers to raise employment for the fourth consecutive month," the report said.
Production grew for the 14th consecutive month, but "the rate of expansion was the weakest so far in 2010," the report said.
Monday's report "suggests that the manufacturing sector will remain a strong contributor to (the) gross domestic product," said Rob Dobson, senior economist at Markit.
David Noble, chief executive officer at the Chartered Institute of Purchasing and Supply said: "As expected, we're starting to see the PMI taper from the post-recession growth peak, but this is certainly happening at a slower pace than originally anticipated, which means we can breath again."
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