Figures released this morning show that British manufacturing output fell unexpectedly in March.
Analysts had expected a 0.5% rise, but instead output fell by 0.3%. The figures remain at odds with industry surveys which continue to show a solid recovery in manufacturing.
The February figure had shown a 0.6% fall, though this was today revised slightly to show a 0.5% decline.
The annual growth rate to March now stands at just 0.4%. For the first quarter of 2004, manufacturing output was down 0.5% compared with the same period last year.
The figures may cause concern at the Bank of England, which last week raised interest rates to 4.25%. But the Office for National Statistics said today's figures would not affect its 0.6% forecast for Q1 British growth.
