Activity in the UK manufacturing declined for the second month in succession in September, according to a survey by The Chartered Institute of Purchasing & Supply (CIPS).

The CIPS index declined to 49.5 in September from August's figure of 49.7. A figure below 50 implies contraction rather than growth.

However, Rob Dobson of Markit, which carried out the survey on behalf of CIPS have said that the survey result is not necessarily bad news.

"The picture is one of consolidation, not contraction. New orders are rising, sterling is supporting export sales as overseas markets improve and the key orders-inventory ratio remains at an elevated level," said Mr Dobson.