Overall, the UK's production is estimated to have fallen 1 percent in October to stand 4 percent lower than a year ago, the steepest annual decline since August 1991. At the same time, manufacturing output, which excludes oil and gas and utilities, fell 0.3 percent on the month to stand 4.4 percent lower than a year ago. Annual output last fell by that much in October 1991.

The data does imply that Britain's manufacturing sector is currently in its third recession of the last decade. However the UK economy as a whole, driven on by strong consumer spending, is thought to be enjoying the best growth prospects of any G7 nation and looks set to avoid recession.

'The consumer sector is going to be the dominant force driving Monetary Policy Committee thinking over the next couple of months. This highlights the growing imbalances between the manufacturing and service sectors and that is potentially going to be a threat to sterling,' said Adam Chester, economist at Halifax Plc.

Underlining the dire prospects for the industrial sector, National Statistics said it had revised down the trend growth rate for manufacturing output to -6.0 percent from -5.0 percent and the industrial output trend rate to -4.0 percent from -3.5 percent.



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