Manufacturing output slumps

The sector’s output was down 12.8% on January 2008, which is the steepest drop since January 1981. Commenting on today’s figures, Ray O’Donoghue, head of UK manufacturing at Barclays, said: “The 2.9% drop in manufacturing output month on month is broadly in line with figures coming out across Europe. As a picture of strain on UK manufacturing becomes clearer these figures, along with the EEF’s report that all sectors of manufacturing have suffered falls in output and orders, make for a stark indication of the full impact of the current market. “However, there remains some buoyancy even in the midst of this landscape; exchange rates to the euro zone and the US have remained fairly constant in recent months, enabling UK export to be a highly competitive offering. “Despite much pressure and difficulty in calculating budgets for the year ahead, UK industry is doing everything in its power to manage costs… When it comes to managing costs, temporary shut-downs, shorter working weeks and taking all measures possible to outlast the recession are acts of resilience that will help the sector turn the corner out of the current market.”