UK manufacturing output contracts at fastest annual pace since January 1981
Figures from the Office for National Statistics (ONS) have revealed manufacturing output in the UK fell for the eleventh consecutive month in January, and shrank at its fastest annual pace since January 1981.
According to the ONS, output fell 12.8% compared with a year ago as the downturn continues to have a devastating affect on the sector.
On a monthly basis, manufacturing declined 2.9% – more than double the 1.4% that was expected.
The manufacturing industry has been struggling to cope during the recession and figures indicate that the economic downturn may have gathered pace since the start of the year.
Carmakers have been hit severely during the downturn, cutbacks in production and job losses have been rife this year.
In the meantime, in the three month period to January, factory output declined by 6.4% compared with the previous three months, the largest fall since records began over 40 years ago.
Finally, other data released today showed that broader industrial output, which makes up 18% of economic output, shrank by 2.6% in January compared with December and by 11.4% from January 2008.