UK witnessed a surprise fall in manufacturing output during August

Shock fall in manufacturing output

A surprise fall in manufacturing output during August underlined the fragility of the UK's pull out of recession.

The 1.9% slide - the worst performance since January - comes after two months of growth and confounded expectations of a 0.4% rise.

Overall output from the wider production industries, including mining, quarrying and utilities, fell by 2.5%, the Office for National Statistics (ONS) said.

Experts said the figures meant a return to growth for the overall economy between July and September was now "less certain".

Capital Economics' Vicky Redwood said: "August's dismal industrial production figures will dampen some of the recent optimism about the economy's apparent bounce-back."

The downbeat data follows a disappointing survey result from the Chartered Institute of Purchasing & Supply's (CIPS) activity index for September.

This edged down to 49.5, from 49.7 the previous month - signalling a deepening decline in output after previous improvement.

August's figures showed significant declines in machinery, chemicals, electrical and paper and printing output, despite sectors such as car manufacturing beginning to pull out of steep declines.

The ONS's less volatile three-monthly figures however showed no change in manufacturing output in the three months to August compared with the previous quarter.

IHS Global Insight's Howard Archer said the longer-term measure was more representative because gains in June and July reflected factories stepping up production before the August break, when output fell.

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