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Recovery hopes dashed by weak manufacturing
Recovery hopes have been dealt another blow by January data for the production industries, including manufacturing, that showed output shrank far more sharply than expected.
The current Mini hatchback is built at Mini Plant Oxford
By Philip Aldrick, Economics Editor
9:55AM GMT 12 Mar 2013
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A slight improvement in the balance of trade for the month, published in a separate relief, provided little solace following the 1.2pc decline in industrial production between December and January, according to the Office for National Statistics. Economists had expected expansion of 0.1pc.
Although the decline was once again caused largely by North Sea oil platform shutdowns, the UK’s manufacturing sector also disappointed. Following a 1.6pc increase in December, the sector – which remains the country’s largest single industry – declined by 1.5pc.
The figures will rekindle fears of a triple dip recession, folloqwing the 0.3pc GDP contraction in the final three months of last year.
The trade figures were a little better than hoped, with the deficit in goods and services in January shrinking slightly from £2.8bn in December to £2.4bn in January. The goods deficit, which some had feared would expand from £8.9bn to £9bn, shrank to £8.2bn.
The improvement was not driven by an increase in exports over the latest three months, but by a 2pc decline in imports.
Recovery hopes have been dealt another blow by January data for the production industries, including manufacturing, that showed output shrank far more sharply than expected.
The current Mini hatchback is built at Mini Plant Oxford By Philip Aldrick, Economics Editor
9:55AM GMT 12 Mar 2013
Comment A slight improvement in the balance of trade for the month, published in a separate relief, provided little solace following the 1.2pc decline in industrial production between December and January, according to the Office for National Statistics. Economists had expected expansion of 0.1pc.
Although the decline was once again caused largely by North Sea oil platform shutdowns, the UK’s manufacturing sector also disappointed. Following a 1.6pc increase in December, the sector – which remains the country’s largest single industry – declined by 1.5pc.
The figures will rekindle fears of a triple dip recession, folloqwing the 0.3pc GDP contraction in the final three months of last year.
The trade figures were a little better than hoped, with the deficit in goods and services in January shrinking slightly from £2.8bn in December to £2.4bn in January. The goods deficit, which some had feared would expand from £8.9bn to £9bn, shrank to £8.2bn.
The improvement was not driven by an increase in exports over the latest three months, but by a 2pc decline in imports.
Sterling has also been hit by fears that monetary policy could be loosened to help spur growth. Photo: PA
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