Britain's manufacturing industry suffered a massive setback in June after recording its biggest fall for more than 20 years.

Figures from the Office for National Statistics (ONS) showed output slid 5.3 per cent, the largest monthly fall since January 1979 and far bigger than economists' predictions.

The fall meant manufacturing output during June was 8.3 per cent lower than the same month the previous year, while quarterly figures showed a fall of 0.7 per cent.

The wider measure of industrial production, which includes mining and quarrying and electricity and gas output, slumped 4.3 per cent in the month, also the lowest since January 1979.

The ONS issued a warning over the figures, saying the Jubilee bank holiday had changed work patterns.

It said this effect could have increased production in May and reduced it in June.

The ONS said: "While uncertainties remain, there is evidence factories were shut down for longer periods than expected - in some cases, for the whole of the Jubilee week."

The fall in the figures will have a knock-on effect on Britain's economic growth. The ONS said the net impact on total gross domestic product (GDP) would result in a downward revision to the GDP growth estimate of about 0.3 per cent.

The last estimate of GDP for the second quarter of the year showed growth of 0.9 per cent. The ONS said June's fall was of a size it did not anticipate when reaching this estimate.

Ross Walker, economist at Royal Bank of Scotland, said: "It is such a big move it has to be largely down to distortions, but equally there is clearly underlying weakness there as well."