UK manufacturing PMI slips to five-month low but hiring strengthens

LONDON, Sept 1 (Reuters) - Activity growth in Britain's manufacturing sector slowed slightly in August to its weakest since March but factories hired workers at the fastest pace in more than two years, monthly purchasing managers' index data showed on Tuesday.

• S&P Global's headline purchasing managers' index for British manufacturing slipped to 51.7 in August from 51.9 in July, a slightly smaller decline than the drop to 51.5 reported in provisional or 'flash' data last month. Readings above 50 represent growth.

• "Higher levels of production were underpinned by increased intakes of new work, with demand from both domestic and overseas clients improving," S&P Global said.

• Growth in the PMI's manufacturing output component slowed to the weakest since April, as the fastest expansion in two years for investment goods was offset by weaker growth for intermediate goods and a drop in consumer goods production.

• Employment expanded at the fastest pace in two years, due to rising production requirements, improved new orders and a desire to reduce backlogs of work.

• Optimism about the year ahead rose to a six-month high, reflecting stronger sales, reduced geopolitical uncertainty and lower trade tensions.

• Manufacturers raised prices at the slowest rate since March, while their costs rose by the least since February, though tariffs, geopolitical conflict and shipping disruption continued to push up prices.

• The most recent official data showed manufacturing output grew 0.5% in the year to the end of June, while factory gate prices increased by an annual 3.1% in July.

• The PMI data was based on responses from firms between August 12 and August 25.

(Reporting by David Milliken; Editing by Hugh Lawson)