- Chris Williamson, an economist at Markit Economics
Manufacturing production in the U.K. dropped more than initially expected in August, a sign nation's economy may struggle to regain strength, the U.K. Office for National Statistics said on Tuesday. Factory output fell by 1.1%, down from 3.2% gain in July. Analysts had predicted manufacturing output in the U.K. to decline by 0.6%.
"The economy may still pull out of its recession in the third quarter, but a return to contraction in the fourth quarter cannot be ruled out," said Chris Williamson, an economist at Markit Economics in London. "The underlying growth momentum clearly remains extremely weak."
"The August industrial production and trade data are disappointing overall and reinforce suspicions that the UK economy still has its work cut out to achieve even modest sustained growth over the coming months following a likely appreciable GDP bounce-back in the third quarter," said Howard Archer from IHS Global Insight.
The FTSE 100 Index declined by 0.54 per cent to 5,810.25. The broader FTSE All-Share Index tumbled 0.53 per cent to 3,035.52.
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