Industrial production in the UK increased in August as the manufacturing sector continued to expand.

Production rose by 0.3% compared with the previous month, and 4.2% compared with a year earlier. Manufacturing output also rose 0.3% in August, and was up 6% on the year.

The figures offer some hope that the industrial sector will continue to support the overall economy as the fiscal squeeze gets underway," said Jonathan Loynes at Capital Economics.

There are fears in some quarters that the government's spending cuts will damage the UK's economic recovery.