U.K. manufacturing advanced less than expected in September on a decrease in machinery and chemical production, showing that the economic recovery is losing its momentum.
According to the Office for National Statistics factory output gained 0.1% from August, underscoring the economists' gauge of 0.4%. The industrial output lost 1.7% amid a drop in gas and oil output. Six out of 13 manufacturing categories shrank. A rise was mainly recorded in transport equipment, computer, electronic products and pharmaceuticals.
"While the MPC may pause QE at its meeting later this week, if the economic data remain weak then it may not be long before the committee is forced to provide the economy with further stimulus," said Samuel Tombs, an economist at Capital Economics Ltd.