Manufacturing industry figures disappointing
Manufacturing figures in relation to output rose just 0.1% in September against hope of a 0.3% increase, in a disappointing performance after a 1.2% decline in August, according to data published by the ONS.
David Kern, chief economist at the British Chambers of Commerce, said: “The manufacturing figures are disappointing and slightly worse
than expected. The wider industrial production figures are also bleak, even though special factors relating to oil and gas production played a role. On the basis of these figures, there is a distinct possibility that the Q3 GDP figures, initially estimated to increase by 1.0%, will be revised down slightly to show a rise of only 0.9%.
“Longer-term trends in manufacturing still show a decline during the year, and prospects during the month ahead are challenging. In the face of tough fiscal austerity at home and difficult problems facing our trading partners in the eurozone, manufacturers and businesses in other sectors will have to adjust to a difficult reality of weaker growth prospects.
“In spite of these difficulties, British businesses have the talent and ambition to make progress, but the government must do more to help them fulfil their potential. While continuing to reduce the deficit, more forceful action is needed in key areas such as deregulation, support for exporters and improving access to finance through the early establishment of a business bank.”
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