UK factory output weakest in last 3 years, research says

A new research shows that Britain’s factory output has recorded its weakest reading since late 2009, when the country was recovering from its longest and deepest economic recession in more than 50 years.

According to a survey conducted by Engineering Employers Federation (EEF), British manufacturers reported stagnant output over the past quarter, as demand at home remained weak and export orders fell for the first time since the end of 2009.

The manufacturers’ organization, which polled 391 companies between November 2 and November 23, also found that manufacturing output would contract by 1.2 percent in 2012 and grow by 0.7 percent in 2013.

“There is little positive news in these figures. Many manufacturers are steeling themselves for a continuation of tough trading conditions in the next few quarters,” said EEF chief executive Terry Scuoler.

Later on Monday, however, the Markit/CIPS Purchasing Managers’ Index (PMI) for the manufacturing sector was reported to be jumped to 49.1 in November, which is stronger than October’s 47.3 index but still remains below the 50 mark that separates growth from contraction.

Earlier in October, the Office for National Statistics (ONS) found that Britain’s factory output fell more than expected in August 2012 and the country’s trade deficit increased more than twice than in July.

According to the official data, manufacturing output dropped 1.1 percent in August after it experienced an increase of 3.1 percent in July this year. Britain’s deficit on trade in goods and services also widened more than expected to £4.17 billion in August, compared with a deficit of £1.7 billion in July this year.