THE UK manufacturing sector achieved only marginal growth in August as broader industrial production stagnated, the latest official figures have shown, fuelling concerns over the unbalanced nature of the economic recovery.

Figures published yesterday by the Office for National Statistics showed UK manufacturing output rose by just 0.1 per cent month-on-month in August. It had increased by 0.3 per cent in July.

Broader industrial production, which includes mining and quarrying, oil and gas extraction, and electricity, gas and water supply as well as manufacturing, was flat between July and August.

Comparing the June to August period with the preceding three months, both manufacturing output and broader industrial production were flat.

Oil and gas extraction fell by 1.7 per cent month-on-month in August. This fall in August left it down 6.9 per cent on the same month of last year.

Paul Hollingsworth, UK economist at consultancy Capital Economics, said: "August's fairly weak industrial production figures provided further evidence that the economic recovery remained unbalanced in the third quarter."

He added: "The stagnation in industrial production and the meagre 0.1 per cent monthly rise in manufacturing output was in line with the consensus estimate, and echoes last week's downbeat CIPS (Chartered Institute of Purchasing and Supply) manufacturing survey suggesting manufacturers are still struggling to cope with the pound's strength and weak demand from the neighbouring eurozone."

Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "The marginal rise in manufacturing output in August adds to the evidence that the sector has lost momentum in recent months, although it needs to be borne in mind that car production was limited in August by extended holidays."

He believed the manufacturing sector was showing more resilience in the UK than in much of Europe.

However, he added: "It looks unlikely that industrial production made a marked contribution to UK GDP (gross domestic product) growth in the third quarter."

Mr Archer cited his belief that the weak UK industrial production figures reduced still further the chances of the Bank of England raising UK base rates from their record low of 0.5 per cent before the year-end.

He said: "The soft industrial production performance in August will harden expectations that the Bank of England will not be raising interest rates this year, and could even hold off from acting in the first quarter of 2015."