U.K. manufacturing shrank again

Britain's manufacturing output shrank for the second consecutive month, as lacklustre demand at factories weighed on economic growth, the Markit Economics said Tuesday. A measure of factory activity improved to 48.3 in March, up from 47.9 a month ago, however, remained below the 50 mark, which reflects the expansion of the sector. The reading places the average for the first quarter of 2013, which stood at 49, suggesting manufacturing will not shield the struggling economy from a triple- dip recession. Official GDP data will be published on April 25th, however, the evidence so far suggests a strong risk that the U.K. will record a second consecutive quarter of contraction, falling into the technical recession.

"U.K. manufacturing exports have been hit directly not only by the problems in the Eurozone, but also by strong competition overseas," Markit Chief Economist Chris Williamson said in the report. "Activity in manufacturing has fallen at the fastest pace since October and the absence of new orders brings little hope of an uplift in spring."

"All this still points to a very subdued economy, which will keep the pressure on the BoE to do more to offset the UK's tight fiscal stance," said James Knightley, an economist with ING, referring to Tuesday's data.