UK manufacturing output falls this year

11/03/2010

UK manufacturing output has seen a sharp fall this year, according to figures released today (March 11th).

SME Web reports that government data revealed a 0.9 per cent drop in production in January, against expectations of a 0.3 per cent rise.

It also marks a stark contrast to December 2009, when UK economic growth in the final quarter of last year was supported by a 0.9 per cent expansion in the sector.

SME Web notes that today's figure "marks the steepest fall since August 2009 and will renew concerns that the UK economy could dip back into negative growth".

Duncan Higgins, senior analyst at Caxton FX, attributed the dent in production to icy weather in January, which also had a negative impact on retail sales.

He added that the data was "hugely disappointing", having fallen more than one per cent short of expectations.

"Of real concern now is the prospect of economic contraction, with the industrial sector also producing a negative figure for the month," he said.

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Posted by Emma Noble