Industry in recession


UK industry is in recession, the latest figures from the Office for National Statistics show.


Total production output is estimated to have fallen by 0.4% in the first quarter of the year compared with the final quarter of 2015. The largest contribution to the quarterly decrease came from mining and quarrying, which fell by 2.3%.


However, production also fell in the final quarter of last year — again by 0.4% — on the third quarter. Two consecutive quarters of contraction is classed as a recession.


Manufacturing output, the largest component of the index of production, is estimated to have decreased by 0.4% in the first quarter of the year compared with the final quarter of 2015. The largest contribution to the decrease came from the manufacture of coke and refined petroleum products, which decreased by 12.1%.


However, small comfort, factory output was up — by just 0.1% — in the final quarter of 2015 compared with the third quarter.


In first quarter of 2016, production and manufacturing output remained below the levels of the first quarter 2008 by 10.0% and 6.9% respectively.


www.ons.gov.uk/economy/economicoutputandproductivity/output/bulletins/ukindexofproduction/mar2016