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UK manufacturing declines sharply
IveSeenTheLight
Posts: 13,322 Forumite
Manufacturing output declined at its fastest rate since 1981 in December, underscoring the fragile state of the UK economy, official figures show.
The Office for National Statistics (ONS) said it fell 10.2% from a year earlier as recession hit the sector.
For the final three months of 2008 output fell 5.1%, the biggest quarterly fall since 1974.
The ONS said the weak manufacturing data meant the UK's recession was worse than first thought.
'Unrelenting gloom'
It said the data meant that the contraction in UK GDP could be 1.6% in the fourth quarter, compared with the preliminary estimate of 1.5%.
"December's UK industrial production figures maintain the picture of unrelenting gloom in the manufacturing sector," said Jonathan Loynes, economist at Capital Economics.
"Various surveys suggest that things are set to get even worse over the coming months, with no signs at all that the drop in the exchange rate is yet boosting manufacturers' export order books," he added.
On a monthly basis, the fall in manufacturing was 2.2% - much more than the 1.4% forecast.
Broader industrial output, which also includes mining, oil and gas extraction and power supply, shrank by 1.7% in December and by 9.4% from December 2007. Data released at the same time showed that producer output prices rose at an annual rate of 3.5% in January, down from 4.6% in December.
http://news.bbc.co.uk/2/hi/business/7874297.stm
The Office for National Statistics (ONS) said it fell 10.2% from a year earlier as recession hit the sector.
For the final three months of 2008 output fell 5.1%, the biggest quarterly fall since 1974.
The ONS said the weak manufacturing data meant the UK's recession was worse than first thought.
'Unrelenting gloom'
It said the data meant that the contraction in UK GDP could be 1.6% in the fourth quarter, compared with the preliminary estimate of 1.5%.
"December's UK industrial production figures maintain the picture of unrelenting gloom in the manufacturing sector," said Jonathan Loynes, economist at Capital Economics.
"Various surveys suggest that things are set to get even worse over the coming months, with no signs at all that the drop in the exchange rate is yet boosting manufacturers' export order books," he added.
On a monthly basis, the fall in manufacturing was 2.2% - much more than the 1.4% forecast.
Broader industrial output, which also includes mining, oil and gas extraction and power supply, shrank by 1.7% in December and by 9.4% from December 2007. Data released at the same time showed that producer output prices rose at an annual rate of 3.5% in January, down from 4.6% in December.
http://news.bbc.co.uk/2/hi/business/7874297.stm
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:
0
Comments
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Thats no big surprise. Noone can get credit, businesses rely on credit, people are panicked and holding onto whatever cash they have so aren't spending, others who do need stuff can't get the cash to buy it.
Is it any surprise that industry is on its knees?0 -
I can only see it getting worse.Happy chappy0
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I've been hearing this for so long, I didn't know we had any manufacturing left, seriously there can't be much left these days.0
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10.2 yoy is nothing.
Japan is falling at that (almost) Month on Month!
In direct comparision:
Japan December - 9.6%
UK December - 1.7%
If anything this is a good sign that the UK manufacturing is better able to weather the down turn than its competitors.0
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