07.12.12
Factory output falls 1.3% – ONS
The latest data from the Office for National Statistics (ONS) saw manufacturing output fall faster than expected, pushing the UK closer to a triple-dip recession.
The figures also put the UK’s AAA credit rating under great pressure and could significantly knock business and consumer confidence.
In October, factory output fell by 1.3%, instead of the predicted 0.2% decline. The wider measure of industrial production, including mining and utilities, fell 0.8%.
Andrew Goodwin, senior economic adviser to the Ernst & Young Item Club said: “A truly dire set of figures for the manufacturing sector. With services only growing very slowly, this sizable drag from production is likely to be enough to tip fourth-quarter GDP growth back into negative territory.”
The Office for Budget Responsibility (OBR) is predicting a contraction of 0.1% for the final quarter of this year.
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