The annual rate of decline in industrial production, at 12.4%, is still the steepest since records began in 1968 but analysts were encouraged by the monthly data.

The Guardian reports that industrial production fell by less than expected in March, providing yet more evidence that the worst of the recession may be over. Britain's trade gap has also narrowed to its smallest level in almost two years.

Figures from the Office for National Statistics (ONS) today showed that production fell by 0.6% in the month to March, against analysts' expectations of a drop of 0.8%. The annual rate of decline, at 12.4%, is still the steepest since records began in 1968 but analysts were encouraged by the data.