Factory output down

Manufacturing output posted the biggest contraction for over three and a half years, according to official figures.

Manufacturing output shrank by 1.3% in the final quarter of 2012 compared with the previous quarter. That is the biggest three-monthly fall since April 2009 when the country was in recession and it was down by 2.5%.

The largest downward contributions in manufacturing output were: the manufacture of food products, beverages and tobacco, which fell by 2.2%, followed by the manufacture of basic metals and metal products, which fell by 2.7%, and the manufacture of basic pharmaceutical products and pharmaceutical preparations, which fell by 3.6%.

The limited good news was that there were increases in three subsectors, including a 1.0% rise in the manufacture of transport equipment.

Factory output was down by 1.8% on the same period a year ago.

The more volatile monthly figures showed a 1.6% increase on the previous month.

The index of production (manufacturing, mining and utilities) was down by 1.9% in the final quarter of 2012 compared with the previous quarter, and 2.4% down on the same period a year ago.

The figures increase the likelihood of a triple-dip recession.

www.ons.gov.uk/ons/dcp171778_298894.pdf