"Manufacturing is past the worst that we saw in the second half of 2011, but it's still in a very difficult situation"
- Howard Archer, chief European economist at IHS Global Insight
U.K. manufacturing output rose less than expected in January, said the Office for National Statistics on Thursday. Factory output gained 0.1 per cent from December, a sign the economy is still facing headwinds.
"Manufacturing is past the worst that we saw in the second half of 2011, but it's still in a very difficult situation," Howard Archer, chief European economist at IHS Global Insight in London.
In a separate report the statistical agency said producer input prices jumped 2.1 per cent in February, led by an increase in oil and gas prices.
"Another problem is the rise in oil prices. It may put pressure on manufacturers to raise prices at a time when demand is still fragile," added Mr. Archer.
© Dukascopy Bank