The downturn in the UK manufacturing sector has worsened after factories' output and new orders fell at a faster pace in July due to weakening demand for products.

The S&P Global/CIPS UK Manufacturing PMI survey showed a reading of 45.3 in July, the worst since the start of the year, and marking the 12th consecutive month of decline for the sector, Mail Online reported..

Manufacturers said overstocked clients made fewer orders, with exports shrinking at one of the fastest rates in three years, as 'global market conditions' impacted demand from most parts of the world.

Domestic orders fell for the fourth month in a row, and at the quickest rate since December.

Rob Dobson, director at S&P Global Market Intelligence, said: 'Domestic and export demand are weakening, and backlogs of work are declining sharply, all of which likely presages further cutbacks to production, employment and purchasing in the months ahead."

The downturn was widespread across all manufacturing sectors, from makers of consumer and intermediate goods to makers of investment goods like machinery.

The rate of job losses accelerated to a seven-month high, as factories reacted to weak demand by trying to cut costs.

Consumer and intermediate goods producers slashed staff numbers in most roles, while job creation among investment goods makers eased to a near standstill.

Punchline says: "The indicators are not looking good at the moment. But on the flip side, we've had reports of strong performances from BAE Systems, Safran and other firms involved in the aviation industry in Gloucestershire which have proved really, really strong."