Manufacturing data underlines triple-dip risk

Figures from the Office for National Statistics (ONS) showed that the index of manufacturing fell by 1.4% between February 2012 and February 2013 although the monthly figure for February 2013 compared with January 2013, rose by 0.8%. Mike Rigby, head of manufacturing, Barclays, said: "Today's figures will do little to alleviate concerns around a possible triple-dip recession. We are however seeing optimistic investment plans from our customers for this year, but whether these will be realised, particularly as external challenges persist, remains to be seen." At the manufacturers' organisation EEF, chief economist Lee Hopley said the data indicated a partial reversal of January's big fall in manufacturing with notable month on month gains in output across transport, metals and investment goods. She continued: "While many manufacturers are increasing efforts to grow in new markets, another round of weak trade data suggests challenging conditions persist across a number of key markets. In line with much of the survey data we've seen since the start of the year it looks like industry will struggle to make a positive contribution to overall growth in the first quarter of 2013."