Factory gate is closed on rate cut hopes

The monthly index from the Chartered Institute of Purchasing & Supply slipped to 51 in April, meaning industry continues to expand, albeit slowly. But it was the pricing indices - both at their highest for at least 12 years - that worried economists.

Inflation is a major concern for the Bank when it fixes interest rates. "We've got very elevated pricing readings despite another slight moderation in growth," said Ross Walker at RBS.