British factories have suffered their weakest month since the early days of the coronavirus pandemic, with orders shrinking dramatically.

The manufacturing purchasing managers’ index – a closely watched indicator of economic activity – has hit a 39-month low of 43.0.

A score below 50 indicates contraction – and this is the 13th month in a row where growth hasn’t been recorded.

Rising interest rates at home and abroad are being blamed for the slump.

Rob Dobson, director at S&P Global Market Intelligence, said output and new orders have contracted at rates rarely seen outside of crisis periods.

“Purchasing activity, inventory holdings and staffing levels were all cut back in August as manufacturers strived to control costs, protect margins and operate in a much leaner and efficient manner,” he explained.

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