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| UK manufacturing declines sharply | UK manufacturing declines sharply |
| (about 2 hours later) | |
| UK manufacturing output fell at its fastest pace since 1981 in November, official figures showed, underlining the fragile state of the economy. | UK manufacturing output fell at its fastest pace since 1981 in November, official figures showed, underlining the fragile state of the economy. |
| Output fell 7.4% from a year earlier - the biggest drop since June 1981. On a monthly basis, the fall was 2.9%, the Office for National Statistics said. | Output fell 7.4% from a year earlier - the biggest drop since June 1981. On a monthly basis, the fall was 2.9%, the Office for National Statistics said. |
| The news is likely to reinforce expectations that policymakers need to do more to stave off a deep recession. | The news is likely to reinforce expectations that policymakers need to do more to stave off a deep recession. |
| The Bank of England cut interest rates to 1.5% on Thursday, a 315-year low. | The Bank of England cut interest rates to 1.5% on Thursday, a 315-year low. |
| James Knightley, an economist at ING said that the UK economy could shrink by around 3% this year. | James Knightley, an economist at ING said that the UK economy could shrink by around 3% this year. |
| We are in a very painful recession Robert Peston, BBC business editor Read Robert Peston's blog | |
| "Industrial output has now fallen for nine straight months, which is the worst run of data since 1980, so the pressure for further stimulus will continue," he said. | "Industrial output has now fallen for nine straight months, which is the worst run of data since 1980, so the pressure for further stimulus will continue," he said. |
| Bad times | Bad times |
| The weak figures hit the pound, which briefly fell against the euro and the dollar. | |
| Paul Dales, UK economist at Capital Economics, said that manufacturing was likely to continue to plunge despite the weaker pound, which should make UK goods more competitive on international markets. | |
| "It's not a good time to be in industry," he said. | "It's not a good time to be in industry," he said. |
| Industrial production accounts for around a fifth of our economic output, says the BBC's business editor Robert Peston. | |
| He said the figures confirmed that the UK was in a very painful recession. | |
| This week, car manufacturer Nissan said it would cut around 1,200 jobs, a quarter of the workforce at its Sunderland plant, and china and glass group Waterford Wedgwood went into administration. | This week, car manufacturer Nissan said it would cut around 1,200 jobs, a quarter of the workforce at its Sunderland plant, and china and glass group Waterford Wedgwood went into administration. |
| Data released at the same time showed that producer output prices were unchanged in December from November, although analysts had expected a fall. | Data released at the same time showed that producer output prices were unchanged in December from November, although analysts had expected a fall. |
| Input prices fell 2% due to falling raw material costs. | Input prices fell 2% due to falling raw material costs. |
| Are you involved in manufacturing? Are you affected by issues raised in this story? | Are you involved in manufacturing? Are you affected by issues raised in this story? |
| Send your comments using the post form below. | Send your comments using the post form below. |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |