Disappointing Manufacturing Figures Highlight Need for Measures to Support Growth

• Manufacturing output in October down 0.7% on the month, up 0.3% on the year

Commenting on the manufacturing output figures for October, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: “These figures are disappointing and weaker than expected, but not entirely surprising given the global economic situation and the unresolved problems in the eurozone. While there is no need for undue pessimism about the sector’s future, as many firms preserved their skills base during the recession, there will be serious challenges in the months ahead, particularly for those that rely on exporting to Europe.

“Every effort must now be made to contain the downward pressures on the economy and sustain confidence. Following the Autumn Statement, the government must act quickly to implement the credit-easing measures announced by the Chancellor, so that the flow of lending to viable businesses can be improved. The recent increase in the QE programme was welcome, but we would like the MPC to announce an additional £50bn of asset purchases at its meeting tomorrow.”