OUTPUT in the UK manufacturing sector fell for the sixth consecutive month in August to record its longest period of decline for 28 years, official figures showed today.
The Office for National Statistics (ONS) said manufacturing output dropped 0.4 per cent during the month, double the 0.2 per cent drop expected by analysts. The last time output fell for six months in a row was between July and December 1980.
Fall
ing production of transport equipment such as motor vehicles was the main drag on industry between July and August, the ONS said, down 2.3 per cent during the month.
Data yesterday showed sales of new cars plunged by 21.2 per cent last month, the worst performance since 1991.
Paul Dales, at Capital Economics, said August's manufacturing contraction, which was 1.9 per cent lower than a year ago, meant the sector was on course to shrink by 1.1 per cent between July and September and "provided further evidence that the UK probably entered a recession in the third quarter".
The ONS's overall index of production for August - which measures wider industrial output including oil and gas output - was down 0.6 per cent on the previous month and 2.3 per cent on the year.
As well as declines for manufacturing, mining and quarrying production fell back along with electricity and gas supply and major machinery production.
The British Chambers of Commerce (BCC) has warned the UK is already in a recession - defined as two successive quarters of negative growth - with business confidence, profits and turnover now at record lows.
The business group said today that an interest rate cut by the MPC on Thursday would be the "right thing to do".
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