"Manufacturing activity in the UK fell from 63.9 in June to 60.4 in July. This was mainly due to technical difficulties like shortages of materials and supply chain bottlenecks, Despite the fall the recovery of the sector which now makes up a little over 20% of GDP remains strong.

Transport and labour remain the most significant issues, while the overall recovery has seen costs increase, which will keep inflation on the front burner.

Supply chain difficulties and shortages of raw materials are unlikely to be resolved until next year, and this will drive the pace at which the recovery takes hold.

Manufacturing activity in the UK fell from 63.9 in June to 60.4 in July. This was mainly due to technical difficulties like shortages of materials and supply chain bottlenecks, Despite the fall the recovery of the sector which now makes up a little over 20% of GDP remains strong.

This data may be a factor when the MPC meets on Thursday. It will allow those who believe that support should stay in place until the recovery is sufficiently robust to stand on its own, while the hawks will point to the inflationary effects of rising costs.

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