BCC: Manufacturing decline indicates recession
Sep 10 2008
The greater-than-expected downturn in manufacturing output indicates the UK economy is 'very probably' in technical recession, the British Chambers of Commerce (BCC) remarks.
Figures released by the Office for National Statistics show manufacturing output fell for the fifth successive month in July, going down by 0.2 per cent.
The sector's activity was found to be 1.4 per cent less than it was the year previously.
David Kern, economic adviser to the business group, explains that the falls were bigger than had been expected.
'It is disappointing that the benefits of a weaker pound in terms of improved export competitiveness have not been sufficient to offset the negative effects for manufacturing of a weakening home market,' he comments
Kern advises the Bank of England that to avoid a major economic downturn it 'must not delay too long' in cutting interest rates as soon as inflationary pressures will allow it to do so.
About The British Chambers of Commerce
The British Chambers of Commerce (BCC) is the national body for a powerful and influential Network of Accredited Chambers of Commerce across the UK; a Network that directly serves not only its member businesses but the wider business community.
The BCC is the Ultimate Business Network. No other business organisation has the geographic spread of the BCC. Every Chamber sits at the very heart of its local business community providing representation, services, information and guidance to its members. Find out more at: www.britishchambers.org.uk/
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