Britain's industrial sector put in a stronger than expected performance in June, with overall Industrial output climbing 0.1 per cent to stand 2.0 per cent higher on the year.

Analyst had expected a slight fall in the monthly rate and a 1.8 per cent increase on the year.

The Office for National Statistics said yesterday that manufacturing output, which excludes the volatile energy sector, also moved higher, by 0.2 per cent on the month and 2.1 per cent on the year.

The figures suggest conditions in the industrial sector may not be as bad as recent survey evidence has indicated.

However, since overall industrial output accounts for just a fifth of the British economy, its impact on overall GDP growth is modest.

The ONS said the rate of growth in the industrial sector is running at around 1.0 per cent and for manufacturing at around 0.5 per cent. Both figures were unchanged from earlier estimates.