The value of exports from the UK manufacturing sector fell during January 2016, according to the latest figures from Markit and the Chartered Institute of Procurement & Supply.

Although the manufacturing industry as a whole experienced growth during the year, this expansion of output was supported primarily by improved domestic demand, with overseas numbers falling into decline.

The lower overseas sales were attributed to stronger competition and tough market conditions, with some companies also noting that, despite recent easing, the sterling-euro exchange rate is reducing the profitability of trades with other eurozone nations.

It was also noted that the operating environment is becoming increasingly competitive, both domestically and internationally, with companies fighting fiercely to win new customers.

Rob Dobson, senior economist at Markit, said: "The trend in new export orders continues to disappoint ... Even after recent easing in the exchange rate, a number of manufacturers are still finding that the strength of the pound against the euro is impacting order inflows."

As such, the report recommended that the Bank of England consider delaying its first rate increase until the latter half of 2016 at the earliest.