A new study from EEF, the manufacturers' association, has revealed that 40 per cent of the nation's productivity gains are set to come from the manufacturing industry. 

It was suggested that chancellor George Osborne would be well advised to consider targeting spending in this area in order to support wider economic growth. 

Titled 'Manufacturing, a solution to the productivity crisis', the report shows that manufacturers are more productive than other parts of the economy.

Over the past five years, output per hour in manufacturing has grown at four times the national average rate. 

EEF director of policy Paul Raynes praised the government's commitment to improving productivity, and urged ministers to ensure funding is targeted efficiently. 

"Ultimately, the private sector, and manufacturing in particular, will deliver the lion's share of the UK's productivity improvements, but the state can be a crucial partner," he commented.