British manufacturing purchasing managers' index (PMI) slumped to 48.0 in June, showing that the sector suffered the worst contraction since February 2013, a survey said on Monday.

The latest reading down from 49.4 in May, meaning the British manufacturing PMI already fell for the third consecutive month and below the 50.0 neutral benchmarks for the second running month.

According to IHS Markit, which compiles the survey, high stock level and weakening demand from both domestic and export markets all resulted in the PMI downturn deepening.

"The impact of firms unwinding stockpiles built before the original Brexit date continued to reverberate through the sector and exacerbate weak demand. This led to solid decreases in both production and new orders, which sank the headline PMI to its lowest in almost six-and-a-half years," said Rob Dobson, Director at IHS Markit.

Duncan Brock, Group Director at the Chartered Institute of Procurement and Supply, said: "All the signs from the manufacturing sector point to another decline next month unless someone pulls a rabbit out of the Brexit hat."

Meanwhile, business optimism dipped to its third-lowest level in the series history during June. IHS Markit reported that Brexit uncertainty and softer global and domestic economic growth weighed on some firms' outlooks.

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