UK manufacturing output increased by 0.3% in July from the previous month, according to figures released from the Office for National Statistics.

The rise means that the year so far has seen an increase of 4.9% - the best annual gain since 1994

Industrial output rose 0.3% in July, recovering from a 0.5% in June, and taking the annual rate to 1.9%.

"It's encouraging and we think the outlook for manufacturing remains on the positive side, not just on general recovery grounds but possibly also on reasonable export prospects," said Philip Shaw, an analyst at Investec.