Manufacturing output falls again

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UK manufacturing output declined for a fifth straight month in July, official figures showed, underscoring the weak state of the UK economy.

The Office for National Statistics said that manufacturing fell by 0.2% between June and July, more than the 0.1% analysts had expected.

Economists said that the figures were further evidence that the UK economy was likely to enter a recession.

However, the recent fall in the pound could offer the sector some hope.

"Once again it's grim news for manufacturing," said Philip Shaw, chief economist at Investec.

The further fall in the pound offers some hope Paul Dales, Capital Economics

"Overall, it would tend to support our call that the economy will be in recession by the end of the year."

Overall industrial production fell by 0.4%, as maintenance work on oil and gas rigs hit energy production.

Manufacturers of electrical and optical equipment saw the biggest declines in output.

The manufacturing sector could benefit from the pound's weakness against the dollar and the euro, which makes UK exports more competitive on international markets.

"The further fall in the pound offers some hope. But this is unlikely to result in a surge in exports at a time when the overseas environment remains so weak," said Paul Dales, UK economist at Capital Economics.

In July, the pound was worth $2 but is now changing hands at around $1.75.