There are fresh fears for the manufacturing sector after new data showed a slump in output.

Figures released today showed that output slumped by 5.3 per cent in June - the biggest monthly fall for 23 years.

Forum Response: Construction Products Association

Allan Wilen, economics director of the CPA, told ePolitix.com: "The results of the Association's Construction Products Trade Survey, due to be published later this week, reflect the June slump shown in the recent manufacturing output figures.

"However, this poor monthly performance was set against buoyant sales earlier in the second quarter of 2002, and was precipitated by the disruption caused by both the Jubilee weekend and the World Cup. Furthermore, a balance of two-thirds of all firms surveyed expect sales to increase in the current quarter and over the next twelve months.

"Expectations of a sustained rise in workload are dependent upon government's delivery of its promised investment in the built evironment. This is supporting an increase in capital expenditure by the construction products industry in sharp contrast to other parts of UK manufacturing. The extra investment has been primarily directed at plant and equipment, e-business and product improvements."

Forum Response: Institute of Directors

A spokesman for the IoD told ePolitix.com: "These figures are certainly disappointing, manufacturing is clearly still bunder-performing.

"Although some of the slump in output can be attributed to the long Jubilee Bank Holiday Weekend there is still obviously cause for concern."