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UK manufacturing output saw its longest period of consecutive growth in eight years in June, according to new official figures.

Industrial production rose by 0.2 per cent over the month, its fourth monthly consecutive rise, the Office of National Statistics (ONS) revealed today.

The increase marks the longest consecutive output jump recorded in the sector since the period from May to September 1999.

Official data showed that the annual rise in manufacturing output subsequently reached 0.9 per cent in June, with "significant" increases in the transport and equipment industries fuelling the rise.

The release of the ONS data came just hours after the Confederation of British Industry (CBI) published new research indicating that the level of employment within the manufacturing sector fell at its lowest pace in two years over the three months to July.

Around 5,000 manufacturing jobs were lost in the quarter between May and June, according to the business group's latest regional trends survey - conducted with Experian.

It stressed that the figure was "substantially lower" than the long-term average of 30,000 job losses per quarter recorded since 2003.

The survey also showed a rise in new production orders for the third consecutive quarter, said the CBI, although the business group stressed that according to its research output growth had continued at a slower pace.

Doug Godden, head of economic and fiscal policy at the CBI, said the employment data indicated that the "revival" in the manufacturing sector was continuing, with the improving eurozone economy helping to drive demand.

"However, higher interest rates at home, increased oil prices and sterling's strength against the dollar will pose challenges to the sector over the next six months," he warned.

Analysts conceded that the data would add to the Bank of England's fears that UK economic growth is allowing factories to charge their customers more, thus fuelling inflation and leading to the possibility of a further rise in the benchmark rate of interest – which policymakers opted to keep on hold at 5.75 per cent last week.

"The Bank of England will be concerned that recent sustained healthy production will increase pressure on capacity and also boost manufacturers' confidence in their pricing power," said Global Insight chief economist Howard Archer.