Manufacturing declined in May
Jul 08 2009
Manufacturing output fell unexpectedly in May, according to new figures from the Office for National Statistics (ONS).
The department claims there was a 1.2 per cent contraction in manufacturing output in the last three months.
In addition, the figures show that output dropped by 0.5 per cent over April and May, going against predictions of 0.2 per cent growth.
Howard Archer, chief UK and European economist at financial analyst IHS Global Insight, says the findings make it less likely that the UK economy avoided contraction in the second quarter of the year.
Archer also claimed the result 'offers a clear reminder that the economy is still in a very fragile state despite improving significantly from the lows seen in the first quarter'.
The ONS figures come as the National Institute of Economic and Social Research unveils its monthly estimate of gross domestic product (GDP), which claims UK total output decreased by 0.4 per cent in the three months ending in June.
Furthermore, the group says it is unlikely that March will be considered the 'trough of the recession', although it suggests that the UK economy is now facing stagnation rather than sharp contraction.
Yesterday, the British Chambers of Commerce claimed that the worst of the recession has passed, but warned that companies need continued support from the government to make the most of the eventual recovery.
There are currently no comments on this article
Comments