Manufacturers received a jolt yesterday after official figures showed a surprise slowdown in factory output between May and June.

The 0.7% decline in manufacturing activity followed two strong months and may just be a blip in the sector's recovery, analysts said.

Output was still 0.9% higher in the three months to June with the rate up 1.6% on a year ago.

Investec economist David Page said: "There is often volatility in the figures and that may be the case today. We are not looking at any underlying weakness, particularly as other data for July has been strong."

The biggest falls in the month-on-month figures were seen in the car production industry, following strong gains in May, and in basic metals. The wider measure of industrial production was also down 0.3% in June.

Today's data from the Office for National Statistics formed part of the Bank of England Monetary Policy Committee's discussions on interest rates today.

Friday August 06, 2004