MANUFACTURING’S biggest slump in almost 30 years deepened after a worse-than-expected 1.4 per cent fall in output during October.
October’s dire performance represents the eighth successive month of decline in the worst run since 1980, according to the Office for National Statistics (ONS).
This leaves annual output 4.9 per cent down after September’s figures were also revised lower.
Overall, industrial production, which also includes the mining and utility sectors, fell 1.7 per cent between September and October, at the peak of the crisis in the banking sector.
Paul Dales, of Capital Economics, said “activity all but fell off a cliff” at the start of the final quarter of 2008.
This follows a 0.5 per cent drop in output between July and September — the first in 16 years — as the ailing UK economy lurches into recession.
“The recession is clearly deepening and the downside risks to our forecast that GDP will fall by 1.5 per cent next year are growing,” said Mr Dales.
Bank of England rate-setters have slashed interest rates from five per cent to two per cent in the past two months in a bid to revive the struggling UK economy and experts suggested more cuts to come, taking rates to an all-time low.
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