Manufacturers were “walking rather than running” in August as new figures today showed the sector endured its worst performance in 14 months.

Eurozone manufacturing expanded at a faster pace than initially estimated in July as the industry resumed growth after two years of contraction amid increasing signs the economy is pulling out of a record-long recession.

The eurozone was poised to enter a technical recession as private sector business activity declined for the seventh month while Ireland was the only bright spot.

SERVICES companies reported an increase in new business last month, notably from domestic clients, but job cuts in the sector continued.

Worries over the fragile recovery among UK manufacturers intensified today after growth slowed to a nine-month low in August.