According to the Resolution Foundation, the UK has not experienced such a slow stretch of growth since 1826.
Make UK has urged the Government to adopt a formal industrial strategy, something drawn up by the Conservatives under Theresa May but then dropped under later administrations.
This would seek to focus on key areas of strength in the UK and provide them with support, for example aerospace, pharmaceuticals, luxury car making and frontier technologies such as artificial intelligence, nuclear small modular reactors (SMRs), quantum computing and floating offshore wind turbines.
Around the world, major economies such as China, the US and the European Union are all pumping tens of billions of dollars into such strategies as part of a race for dominance.
However, industrial strategy and greater state intervention in manufacturing raises the risk of Whitehall “picking winners”, some economists have warned.
Meanwhile, manufacturing’s share of the economy has declined dramatically over the past three decades with Britain now more focused on services.
Manufacturing accounted for 17pc of the UK economy in 1990, but now accounts for 9.4pc according to official figures.
Jonathan Reynolds, the Business and Trade Secretary, said: “This shows just how competitive the global market is for manufacturing these days.
“If you stand still, as previous governments have done, you risk other countries stealing a march on you.
“Britain has a thriving, successful manufacturing sector. But these figures show that industry needs stability and a clear long-term plan.
“That’s what our new industrial strategy will deliver – ensuring UK manufacturing rises up the rankings, and has the confidence it needs to drive economic growth and deliver a fairer, greener future.”