Manufacturing output slips in January
Britain's factories suffered a 0.2 per cent monthly decline in output during January.New figures released today by the Office for National Statistics (ONS) reveal the slip, which contributed to an overall increase in output in the three months to January of just 0.1 per cent.The fall has been primarily attributed to a strong pound, hitting demand for British products which rely heavily on exports, mainly to Europe, for prosperity.It is unlikely to be a significant factor in deterring the Bank of England's monetary policy committee from a further hike in interest rates, however, as data already available for February showing stronger confidence will undermine the importance of today's ONS results."Overall industrial production still managed to eke out a small rise in January, helped by higher energy output and mining activity," Howard Archer of research firm Global Insight commented."Consequently, January's relapse in manufacturing output does not dilute our belief that another interest rate hike is highly likely in April or May."He added that Britain's manufacturing sector, accounting for only 15 per cent of the country's overall GDP, had only limited impact upon the Bank's interest rate decisions.
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