Dip in UK's manufacturing growth

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The rate of growth in UK manufacturing activity slowed slightly in March, but remains robust, the Chartered Institute of Purchasing and Supply has said.

Its latest Purchasing Managers' Index fell to 54.4 last month from February's two-and-a-half-year high of 55.5.

Analysts had expected the index, which is co-published with the Royal Bank of Scotland, to dip no further than 55.1.

The index is compiled from a number of measures, including output and orders. A figure above 50 indicates expansion.

Analysts said the figures did little to alter expectations that the Bank of England will leave UK interest rates on hold at 5.25% when its Monetary Policy Committee meets later this week.

"The UK manufacturing industry remains comfortably in expansionist mode, even if the heady gains of February were not repeated in March," said Geoffrey Dicks, UK economist at the Royal Bank of Scotland.