EEF, the manufacturers' organisation, has suggested that the latest manufacturing purchasing managers index (PMI) highlights some of the challenges facing the industry at present. 

Published by the Chartered Institute of Procurement & Supply and Markit, the latest data revealed a slight improvement in July, although industry performance remains subdued. 

Chief economist for the EEF Lee Hopley acknowledged that the headline movement is positive, but the underlying trends are all too familiar. 

She said domestic demand is still strong, driven by the purchasing power of consumers, but emphasised the fact that demand for investment goods in the oil and gas sector is weak - and firms are also having difficulties getting exports moving. 

'This is good enough to keep employment prospects growing across manufacturing, but until something gives in export markets or oil and gas investments, the outlook for growth will remain modest,' Ms Hopley commented.