Economy Stagnant Say Latest Figures

The Journal (Newcastle, England), October 12, 2011 | Go to article overview

Economy Stagnant Say Latest Figures


THE manufacturing sector shrank for the third month in a row in August, according to new figures - adding to evidence that the wider economy is stagnating.

Manufacturing output declined by 0.3% between July and August, the Office for National Statistics (ONS) said, after declining 0.2% in July and 0.1% in June.

The fall in manufacturing was driven by the wood and paper products and metal products industries, the ONS said, while the overall index of production, boosted by the oil and gas sector, rose 0.2%.

The weak data come shortly after the Bank of England announced an emergency pounds 75bn injection into the economy as the threat of a double-dip recession became increasingly serious.

The figures come amid deepening fears over the health of countries and banks in the eurozone - the UK's biggest export market.

Elsewhere, weak data for the powerhouse services sector and softer trade data have damaged prospects for overall economic growth in the third quarter of the year, which will be revealed on November 1. Meanwhile, Bank governor Sir Mervyn King last week warned the UK could be facing its worst financial crisis since the depression of the 1930s. …

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