UK manufacturing output in surprise fall

| April 6, 2011 | 0 Comments

The Office for National Statistics (ONS) has today revealed UK manufacturing output experienced a shock fall in February after recovering in January following December’s weather related fall.

According to the ONS, manufacturing output fell 1.2% on the month - attributed to a sharp drop in oil and gas production.

However, analysts believe the fall is temporary and output should rebound in March.

According to Howard Archer of IHS Global Insight: “The dip in industrial production in February and only flat manufacturing output reinforces the case for the Bank of England to keep interest rates unchanged on Thursday as major uncertainties and ongoing significant concerns over the growth outlook (particularly consumer spending) counter well-above-target and rising inflation.”

Following the release of the figures, sterling fell more than half a cent against the dollar to hit a session low at $1.6281.

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