British factory output fell for the first time in seven months as new orders dropped and business leaders delayed investment decisions in the wake of the Budget, a closely watched survey showed, writes David Connett.

Companies struggled to export as new orders from overseas contracted with weaker demand in the US, EU, China and the Middle East.

S&P Global's PMI report also showed firms cut back staffing levels, purchasing activity and inventory holdings last month.

The S&P Global UK Manufacturing PMI fell to a nine-month low of 48 in November, down from 49.9 in October. Anything below the 50 mark is regarded as a contraction in the manufacturing sector.

Rob Dobson, of S&P Global Market Intelligence, said: "Conditions in the UK manufacturing sector deteriorated again in November.

"The headline PMI fell to a nine-month low as concerns surrounding the economic outlook, high costs and weak demand led to lower output, falling orders and cutbacks to purchasing, jobs and inventory holdings."

He said that while firms of all sizes are experiencing a downturn, small companies are the hardest hit, reporting marked drops in output, new orders and new export business.

Some firms said the Budget announcements had resulted in their own financial plans as well as their clients being "reappraised".

Supply chain concerns had also intensified as the Red Sea crisis, port disruptions and post-Brexit border regulation problems were all combining, leading to longer supplier delivery times, input shortages and rising costs.

Manufacturers' cost inflation had also picked up while labour costs as a result of the Budget had left manufacturers facing an environment of high costs, low demand and raised uncertainty for the foreseeable future.