"The data raise the chances of a triple-dip recession in the wider economy"
- Samuel Tombs, an economist at Capital Economics Ltd.
British manufacturing output contracted more than initially expected in October, reinforcing fears that the economy will shrink again at the end of this year. Manufacturing output shrank by 1.3% in October after stagnating in September, and was 2.1% lower from a year ago, posting the biggest drop since June, the figures from Office for National Statistics showed. The overall industrial production, which includes energy production and mining, declined by 0.8%, posting a third consecutive month of drop. The main reason for such weak data is that nation's manufacturers are under pressure as Eurozone's sovereign debt crisis hurts domestic demand.
"The data raise the chances of a triple-dip recession in the wider economy," said Samuel Tombs, an economist at Capital Economics Ltd. in London. "We continue to expect industrial production to fall further in 2013 as the euro zone's recession deepens and high inflation holds back domestic consumer demand for manufactured goods."
"Very disappointing, triple dip here we come," said Alan Clarke, economist at Scotiabank. "Manufacturing was diabolical. Sadly, I think there is not a lot to suggest that it is temporary. Survey data has been fairly downbeat."
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