UK industrial output hits ten-year low

The latest figures on industrial output have revealed a ten-year low in the UK’s industrial performance.

Manufacturing output between September and October fell another 0.3 per cent in a slump that has seen UK manufacturing fall by 0.8 per cent inside the last three months.

With much bigger losses that had been anticipated, the figures from the Office of National Statistics (ONS) revealed that the main losers in the last three months have been textiles, leather and clothing, metals and metal products, machinery, electrical and optical equipment, and rubber and plastic products.

The biggest fall was in the manufacture of computer and information processing equipment sector, which showed a further significant slump, down 8.7 percent in the quarter.

Despite the consistently gloomy forecasts on economic growth there have been rises in food, drink and tobacco, fuels, chemicals, transport equipment, wood products, and some other areas of manufacturing.

However, the worst news for manufacturing is that overall the manufacturing sector is down 3.7 per cent on the same three-month period last year. Industry analysts remain concerned that this is the largest fall since the last recession hit the sector in 1991.

Before the publication of the ONS report, analysts were predicting a slight contraction in industrial output figures with manufacturing expected to remain stagnant.

Concern is increasing that the cutting of interest rates from six per cent to four per cent has achieved very little in terms of supporting the UK economy. Some analysts have expressed concerns that further cuts in interest rate may only serve to destabilise the economy. (SP)