By Maximilian Clarke
Muted domestic demand and ongoing uncertainty among the UK’s Eurozone trading partners have seen overall industrial production dip by 0.7%.
The manufacturing index over the 12 months ending September was up 2.0%, whilst the month on month index remain largely unchanged- rising by just 0.2%.
“While this will have a relatively negligible impact on UK GDP growth going forward, it certainly will not be acting as a weight around the UK's neck either,” commented Nick Jones, Chief Economist at World First Currency exchange.
“We have seen some shaky manufacturing data of late. More forward looking measures, such as the PMI series, have suggested that a slight slump may be around the corner. I would expect this to surface in Q4. This latest number will further solidify the Bank of England’s monetary policy posture as ‘ultra-loose’, moving through to the beginning of 2012.”
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