Manufacturing output slides

05-04-2007

Manufacturing output slides
The combined output from Britain's manufacturing sector fell by 0.6 per cent in February, official data has shown.

According to the Office for National Statistics (ONS), there were "widespread decreases" across the sector two months ago.

February's figures mean that overall industrial production is 0.2 per cent behind on the previous quarter.

The official statistics contrast strongly with those from the Confederation of British Industry (CBI), which last month claimed that manufacturing orders had hit a 12-year high.

Howard Archer, chief UK and European economist at Global Insight, explained that the "real picture probably lies somewhere between the two".

Commenting on the ONS data, Mr Archer said the fall in output could be indicative of higher interest rates "taking more of a toll than previously thought".

The Bank of England is widely expected to hold interest rates at 5.25 per cent today, but many in the City are bracing markets for a quarter of a percentage point rise.


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