Manufacturing output figures have shown a 0.6 per cent increase in March, outperforming City expectations by at least half a per cent.

The figures, from the Office for National Statistics, offset a weaker start to the year after falls of 0.6 per cent in February and 0.2 per cent in January. Analysts said the results reveal factory bosses are showing signs they are coping with the strength of the pound and high energy costs.

The statistics also reinforce other recent survey data, including a CBI report which highlighted improved manufacturing optimism in the UK for the first time since February 1995.