THE UK's manufacturing industry was dealt a blow yesterday after figures showed the rate of growth in the sector eased last month.

The Chartered Institute of Purchasing and Supply's (CIPS) activity barometer fell to 53.7 in December, down from 55 the previous month, with any figure over 50 signalling growth.

The figures, which analysts described as disappointing, followed a weakening in official figures last month.

But yesterday's survey was still better than figures provided by the Government last month, which suggested the manufacturing sector was on the brink of recession - defined by output declining over two consecutive quarters.

Roy Aycliffe, director of professional practice at CIPS, said the figures were still robust, with the rate of improvement easing only slightly.

Growth in output eased sharply from November's four-month high, despite efficiency improvements allowing manufacturers to further reduce their backlogs.

Input prices rose for the sixteenth consecutive month, although slightly less than the previous month, as oil prices and the rising cost of metals took their toll.