By Marcus Leach

UK manufacturing data released by the Office for National Statistics (ONS) has added to fears over the state of the UK economy.

Despite a 1.8% increase in May the data fell by 0.4% in June, going against analysts predictions that there would be an increase in June.

Elsewhere separate figures from the ONS highlighted a widening gap in the UK's trade deficit in goods and services, up from £4 billion in May to £4.5 billion in June.

The surplus on trade in services of £4.4 billion was unchanged from May, but this was offset by a larger deficit on trade in goods of £8.9 billion, compared with a deficit of £8.5 billion in May.

"The fall in manufacturing in June was disappointing and worse than expected," David Kern, chief economist at the British Chambers of Commerce (BCC), said.

"While the government perseveres with implementing its tough fiscal programme, everything must be done to support the manufacturing recovery and ensure there are no setbacks."

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