Employment in the UK manufacturing sector fell at its sharpest rate for 10 years in December.

Figures released by the Chartered Institute of Purchasing and Supply (CIPS) recorded a fall from 42.8 in November to 42 in December.

On the CIPS scale a reading above 50 shows growth. The index, which measures new orders, prices and employment, fell to its lowest level since January 1999.

According to the CIPS, the number of firms reporting recruitment freezes or forced redundancies has continued to rise.

A lack of business confidence has meant that companies are postponing contracts and placing fewer orders.