Manufacturing: Slip in factory production

Official figures revealed output dropped 0.4 per cent in April, offsetting gains a month earlier when production jumped 2.2 per cent in the best showing for eight years.

Economists said the latest figures from the Office for National Statistics were not cause for alarm as manufacturing output was still up 2.5 per cent on a quarter-on-quarter basis.

Hetal Mehta, senior economic adviser to the Ernst & Young ITEM Club, said there was often volatility in the monthly data, adding that the sector was being supported by a turn in the stock cycle as customers rebuilt inventories.

"In addition, with the pound remaining weak and therefore continuing to boost UK competitiveness, we expect a healthy recovery in manufacturing as the sector ramps up production to meet export orders," she said.