British manufacturing growth slowed in December although new orders grew at their fastest pace in five months and prices companies charge rose more steeply than for at least five years, a report said yesterday.

While output growth slowed sharply from November?s strong pace and companies shed jobs for the first time in nine months, the report showed broad strength in manufacturing, unlike decidedly less upbeat official data.

The Chartered Institute of Purchasing and Supply and NTC Research said their purchasing managers? index for manufacturing slipped to 53.7 last month from 55.0. That compared with consensus expectations of 54.4 and was well above the 50 mark that divides expansion and contraction.

The data, coming alongside figures showing a sharp fall in home loans and consumer credit in November, confirmed economists in their view that British interest rates will remain unchanged for some time to come.

?The...survey is a pretty mixed bag?, said Howard Archer at Global Insight in London. ?Overall, the data are consistent with the view that interest rates will remain on hold during the early months of 2005, as the Bank of England seeks greater clarity on the strength of the economy and the extent of the slowdown in the housing market?, said Archer.

<B>Ross Finley</B>