There was further evidence this morning suggesting that Britain’s manufacturing sector - which accounts for around 18 per cent of the country's GDP - has steadied following some sharp output declines earlier this year.
The office of National Statistics revealed that manufacturing output in May was unchanged from the previous month, better than the 0.3 per cent decline predicted by economists.
Helping output was a significant rise in food, drink and tobacco.
Though May fell short of the 0.5 per cent improvement recorded in April, it was the second consecutive month not to register a decline. Output fell in each of the first three months of the year, culminating in the sharp 1.9 per cent slide recorded in March.
On a year-on-year basis, the statistics office said ouput was 1.7 per cent lower against expectations of a 2 per cent decline.
In the three months to May, manufacturing output was 1.9 per cent lower than the previous three months against the 1.6 per cent decline recorded in April.
Over the three months, all 13 sub-sectors that make up manufacturing output were lower. Apart from the Jubilee-effected summer of 2002, May was the first time since May 1980 that all 13 were lower.
The wider measure of industrial production, which also includes such things as oil and gas output, also outperformed market expectations, helped by solid increases in mining and quarrying, and electricity, gas and water supply.
The statistics office said industrial production, which accounts for around 22 per cent of GDP, increased by 0.1 per cent in May from the previous month, better than the 0.2 per cent fall penciled in by economists.
This was the second consecutive monthly increase following three successive declines. On a year-on-year basis, the statistics office said industrial production was 1.9 per cent lower against expectations of a 2.4 per cent decline.