Steel output in the UK remained at a virtual standstill amid continuing economic "stagnation", according to a new report.

Output was just 1% higher than in 2011, equivalent to average production of 184,000 tonnes a week, said UK Steel, a division of manufacturers' group EEF. The report blamed reduced car production in Europe and low levels of building work in the UK for the slow recovery.

Director of UK Steel Ian Rodgers said: "This virtual standstill position is despite the export-oriented plant in Teesside re-starting last spring under new ownership and leaves UK steel output still around 30% below 2008/9 levels.

"Government needs to act more urgently in stimulating shovel-ready investment in the UK's infrastructure and other construction activities.

"The data also underline the need for an industrial strategy, with the whole of Government pulling together to frame policies that encourage industrial growth and support UK manufacturing competitiveness."