FIGURES have been released suggesting that the recovery in UK manufacturing has stalled.

Total orders slipped back this month and demand for exports fell to its lowest level since February, the Monthly Industrial Trends poll from the Confederation of British Industry (CBI) showed.

While 18 per cent of manufacturers said their order book was above normal in September, 24 per cent said it was below, giving a negative balance of six per cent. This compared with a positive balance of two per cent for the previous month.

Export orders were adversely affected by the strong pound, which hampered UK competitiveness, and by a weakness in the global recovery, particularly in the US.

Lower demand has led to a build-up of stocks, leading companies to scale back their expectations for output during the coming quarter.

Orders are still above the average for the past ten years, indicating the industry is recovering, but costs such as oil prices averaging $40 a barrel during the month are putting renewed pressure on manufacturers.

Companies are also less certain of their ability to raise prices to offset higher costs, squeezing profit margins.

CBI chief economic advisor Ian McCafferty said: "The manufacturing recovery seems to be stuck in a low gear.

"It is continuing, but the pace has been volatile in recent months, which suggests a degree of uncertainty among manufacturers."