Output in the UK manufacturing sector declined for a fifth straight month in July, according to official figures released by the ONS, illustrating the present parlous state of the UK economy.

According to the stats, manufacturing fell by 0.2 per cent between June and July, more than the 0.1 per cent predicted by analysts. City economists considered the figures as further evidence that the UK economy was likely to enter a recession.

As Philip Shaw, chief economist at Investec, opined, ‘Once again, it’s grim news for manufacturing. Overall, it would tend to support our call that the economy will be in recession by the end of the year.’

During the period, overall industrial production fell by 0.4 per cent as maintenance work on oil and gas rigs hit energy production, while electrical and optical equipment manufacturers experienced the most substantial output declines.

One potential silver lining gathering amid the manufacturing sector cloud is the current weakness of the pound against the dollar and the euro, which makes UK exports more competitive on international markets.

However, as Paul Dales, UK economist at Capital Economics, explains, ‘The further fall in the pound offers some hope. But this is unlikely to result in a surge in exports at a time when the overseas environment remains so weak.’