UK industrial production falls for 12th consecutive month

| April 7, 2009 | 0 Comments

For the 12th consecutive month, UK manufacturing output fell in February according to the Office for National Statistics, and the quarterly measure has recorded the biggest drop since records began in 1968.

Manufacturing, utilities and mining have dropped by 12.5 percent in February from a year ago.

Car manufacturers have been hit particularly hard, although the figures show that all industry sectors are struggling due to the collapse in word trade.

Howard Archer of IHS Global Insight has said that the sharp decline had been fuelled by the fear that the economy would shrink further in the first quarter of 2009 and that interest rates would remain at record lows.

Although the recession has been harder and longer than expected, it is world demand that is the key and until there are signs of renewed demand, then the British manufacturing sector will continue to struggle.

There is hope that following the G20 summit, change is on the horizon although many analysts indicate that recovery is still premature as on an annualised basis, manufacturing output fell by 13.8 percent in February alone.

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