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Figures showing UK manufacturing output declined for the 11th consecutive month highlight the need for urgent action, the British Chambers of Commerce (BCC) states.

According to the Office for National Statistics, the output of the manufacturing industries fell by 2.9 per cent between December and January, with the most significant being the ten per cent decline in the transport equipment sector.

Furthermore, the machinery and equipment industries saw a seven per cent decrease and the electrical and optical equipment sector displayed a 6.1 per cent fall, while the most significant increase was 0.9 per cent in food, drink and tobacco.

David Kern, chief economist at the BCC, says the figures show 'essential' rebalancing towards industry in the UK economy is failing to take place, while manufacturing is not benefiting from the falls in sterling.

He adds: 'The critical priority is to ensure that the vital skills base within manufacturing is not lost during this recession. Urgent measures are needed to help viable and well-managed firms hold on to their trained and skilled employees.'

Last month, the Confederation of British Industry revealed that demand for UK manufactured goods has fallen to its lowest level in 17 years.

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