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Sales fell 5.5 percent to $3.75 billion, weighed down by the stronger U.S. dollar, which cuts into the value of international revenue. Analysts expected $3.78 billion. The volume of goods sold fell 1.5 percent.

The data was better than expected, but marked the longest period of decline since records began in 1947.

Analysts said the data suggested that the worst could be over for the US economy, which has now been in recession for a year.

However the figures for the January-to-March quarter were revised down to -6.4%. The previous estimate was -5.5%.

The figures are worked out on an annualised basis, which reflects the change if continued at the current pace over a year.

The Office for National Statistics (ONS) blamed the sharp revision primarily on weaker output in the construction and manufacturing sectors. It also said the recession started earlier than first thought last year.

Following a request from the US Department of Justice, the SFO froze a number of accounts held “at certain London financial institutions”.

These funds were allegedly acquired in connection with Sir Allen’s suspected fraud scheme, the SFO said. The assets were frozen in April, but kept secret until after his arrest.

They will be frozen pending the outcome of the criminal proceedings in the US.

The Unite union was “astonished” by the scale of the cuts, which it said brought total job losses at the group since January to 7,000.

The banking giant, which is 43%-owned by UK taxpayers, was formed by the merger of Halifax Bank of Scotland and Lloyds TSB late last year.

The rise last month was the same as April’s revised figure, though less than analysts’ forecasts of 6.9%. The output of cars, mobile phones and electronic devices was particularly strong as firms started to reverse earlier cuts in stock levels.

But analysts predict output could slow again, as the world downturn continues. “Production has been rebounding sharply in response to earlier drastic cuts but the momentum is likely to slow in the months ahead,” said Hirohi Watanabe, an economist at the Institute of Research.

Manufacturers predict industrial output to rise by a 3.1% in June and climb 0.9% in July.

A total of 700 manufacturing jobs are to be cut at the Hewlett-Packard plant in Erskine near Glasgow.

The company is to close its manufacturing operations in Scotland and Germany and transfer the work to the Czech Republic.

About 1,300 people are employed by the electronics firm in Erskine and it is understood 600 will remain at the site. Speaking at First Minister’s Questions, Alex Salmond said everything would be done to assist those made redundant.

Mr Salmond was speaking in response to a question from the local MSP, Trish Godman, who said she had been informed of the job cuts.

The world’s second-largest maker of personal computers made a net profit of $290m in the three months to 1 May, down 63% from $784m a year ago.

Revenues at the firm fell 23% to $12.3bn. However the results were better than analysts had feared. Dell said the global trading environment remained “challenging”.