THE Government neglected manufacturers in its eagerness to court dotcom firms during its first term, Trade Secretary Patricia Hewitt said yesterday.

Mrs Hewitt was speaking after manufacturers registered their sharpest fall in output for more than 20 years.

The Queen's Golden Jubilee holiday weekend and World Cup are thought to have contributed to the biggest manufacturing slump since the 1979 Winter of Discontent.

There were also fears that the Office for National Statistics figures for June reflect underlying weakness in the recession-hit sector.

Mrs Hewitt admitted ministers had made mistakes.

"We let the impression build up in our first four years that we were interested in something called 'the new economy' and we weren't interested in manufacturing," she said.

"We have to think of manufacturing as an integral part of the future."

Later the DTI insisted it recognised the importance of the sector.

"Manufacturing matters. It provides a fifth of our national output, four million jobs and produces the majority of our exports," the DTI said.

"We recognise its importance and are committed to making sure it is at the heart of the UK economy. There has been a step change in the Government's focus on manufacturing."

The DTI said for the first time in 30 years there was "now a coherent strategy for manufacturing" and said it was supported by "all key industry stakeholders".