By Jonathan Davies

A "rollercoaster of risks" is taking its toll on the UK's manufacturing sector, according to trade body, EEF.

The lobby group for engineering and manufacturing firms has cut its growth forecast for the industry from 1.5% to 0.7% for the year.

EEF said slowing economic growth in China and the ongoing uncertainty surrounding Greece and the EU are creating challenges for manufacturing businesses. And exports have suffered as a result, its report says.

However, 6% more businesses are planning to hire new staff during the rest of the year and a net balance of +2% are planning to increase investment.

Lee Hopley, chief economist at EEF, said: "While UK data has continued to point to solid growth, UK manufacturing is having to contend with a rollercoaster of risks from the rest of the world.

"We've seen the future of the Eurozone on the line once again, turbulence and uncertainty over China and Greece and, of course, oil and gas are still a concern."