Manufacturing last year contracted by 4% compared with the previous year, producing its worst year since 1991, according to official figures published last year.
The Office for National Statistics said manufacturing output fell by 0.3% in December from the previous month to stand 1.2% lower than in December 2001.
Economists warned that the sector appeared to be heading into its third recession in five years, but said the numbers were alone were not bad enough to prompt the quarter-point cut in interest rate.
