‘Hammered’ manufacturing calls for interest rate cuts

The third quarter figures from the Office for National Statistics show that, across the whole economy, GDP decreased by 0.5 per cent and while the slowdown was the result of both reduced services and production activity, manufacturing output decreased by a whole 1.0 per cent. Distribution, hotels and restaurants made the largest contribution to the 0.4 per cent deceleration in services. Commenting on the figures, EEF chief economist Steve Radley, said: "The question is not whether we are in a downturn but now how deep and prolonged it will be. Whilst pockets of industry are still holding up, large parts of the real economy are being hammered hard. Business and the consumer will now be looking to government and the Bank of England to step up to the plate and deliver a bold package of fiscal measures to help companies backed by further aggressive cuts in interest rates."