UK manufacturing shrank in the run up to the Brexit vote

UK manufacturing output continued to slip in the month leading up to the UK's Brexit vote, according to official data.

The Office for National Statistics said manufacturing production fell 0.3% in June compared to the month before, weighed by a decline in transport equipment output.

Economists had expected a fall of 0.2% in June, which compares to a fall in manufacturing of 0.6% in May. The ONS said year-on-year, production rose 0.9% in June, compared to a 1.5% rise the previous month.

Overall, Industrial production – a broader gauge - rose 0.1% in June compared to May, when output fell 0.6%. This was in line with economist's forecasts.

Capital Economics UK economist Ruth Gregory said the data was "fairly disappointing".

Gregory added: "With production activity almost entirely driven by a 2.3% monthly surge in growth in April, this suggests that growth slowed to a standstill even before the referendum. Indeed, activity fell by 0.6% in May and rose by just 0.1% in June."

Economists at Barclays added: "Overall, we remain of the view that UK industrial production and manufacturing remains a cause for concern; we believe this is driven by a structural lack of competitiveness as well as government policies, only to be amplified by prolonged uncertainty regarding the UK and its trading relationships with the EU and the rest of the world."