UK manufacturing output tumbled unexpectedly in Feb-ruary to its lowest level since summer 2010 – fuelling fears over the state of an economy weighed down by Government austerity measures.

Seasonally-adjusted data published yesterday by the Office for National Statistics (ONS) revealed manufacturing output tumbled 1% month-on-month during February to its worst level since July 2010.

This 1% drop was the steepest monthly fall in manufacturing output since April 2011, and contrasted with the City's forecast of a 0.1% rise.

And the ONS declared yesterday that manufacturing output had fallen 0.3% month-on-month in January, having estimated a 0.1% rise previously.

Manufacturing output in February was 1.4% lower than in the same month of 2011, the ONS said. This was the steepest year-on-year fall in manufacturing output since December 2009.

The weakness of the official manufacturing data is at odds with more upbeat surveys of the sector from the Chartered Institute of Purchasing and Supply.

Samuel Tombs, UK economist at consultancy Capital Economics, said: "February's industrial production figures put something of a dent in hopes that a recovery in manufacturing would help to rebalance the economy and help overall GDP (gross domestic product) to post a decent expansion in the first quarter."

He added: "Manufacturing output fell by a whopping 1% on the previous month, while January's increase was also revised to a fall. February's drop was broad-based across the sub-sectors, rather than the result of a one-off factor hitting output in one sector."

Mr Tombs noted manufacturing output had fallen in four of the five months to February.

Emphasising manufacturing output was at its lowest since summer 2010, he added: "Accordingly, the official figures stand in stark contrast to the strong picture painted by the surveys."

Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "After a recent series of improved surveys on the UK economy, the unexpected sharp drop in manufacturing output in February is a sharp reminder that the economy still has its work cut out to return to sustainable, decent growth."

The ONS data showed the wider measure of industrial production, which includes mining and quarrying, oil and gas extraction, and electricity, gas and water supply as well as manufacturing output, rose 0.4% month-on-month in February.

This was aided by a 6.1% leap in electricity and gas supply in February – the biggest monthly rise in this component since December 2010.

Overall industrial production was also helped by a 4.6% month-on-month rise in oil and gas extraction in February. This was the biggest monthly increase in oil and gas extraction since March 2010.

However, the ONS revised the month-on-month fall in industrial production in January from 0.4% to 0.6%.

Chris Williamson, chief economist at financial information company Markit, described the unexpected drop in manufacturing output in February as "worrying" but cited signs of rising output in the dominant services sector in the opening three months of this year as well as the rise in broader industrial production in February.

UK GDP fell by 0.3% in the final three months of last year.

Mr Williamson said: "A worrying fall in manufacturing output in February casts a shadow of doubt on the UK's economic performance in the first quarter, but higher energy production and rising service sector output mean the economy is still on course for a revival from the contraction seen late last year."

He added: "Manufacturing output fell a surprisingly large 1% in February, according to official data, and a downward revision to January's data – now showing a 0.3% decline – added to the gloom.

"However, the wider measure of industrial production, which includes the energy sector, showed growth of 0.4%, buoyed by a 4.6% weather-related jump in energy production, which should help boost economic growth in the first quarter."

Mr Archer said: "It looks likely that industrial production will be flat at best in the first quarter of 2012, so it will need a decent pick-up in services activity for overall GDP growth to reach the 0.3% quarter-on-quarter rate that we have pencilled in. Survey evidence suggests that this is possible and it does appear that the economy overall picked up appreciably in March."

The Bank of England's Monetary Policy Committee held UK base rates at a record low of 0.5%, and maintained the scale of its quantitative easing programme at £325 billion at the end of its latest monthly meeting at noon yesterday. The QE programme is aimed at stimulating activity by boosting money supply through the purchase of Government and corporate bonds using central bank reserves.