British manufacturing output posted a surprise fall in April, raising the risk of a longer recession and piling pressure on the Government to take action to boost growth.
The Bank of England shied away from injecting more cash into the economy last week, but yesterday, central banker Adam Posen called for further purchases of assets, focusing on company loans.
The Office for National Statistics said today that manufacturing output dropped 0.7pc in April after a 0.9pc rise in March, disappointing forecasts that the latest figure would be flat.
The main drags were a drop in the manufacturing of basic pharmaceutical products and preparations, as well as in the category of other manufacturing and repair.
The wider reading of industrial output, which includes energy production and mining, was unchanged in April after a 0.3pc drop in March and fell short of forecasts for a monthly increase of 0.1pc.
A 13.6pc monthly jump in electricity and gas output caused by the coldest April since 1989 was offset by a 6.4pc fall in oil and gas extraction, due to the closure of a North Sea platform after a gas leak.
Britain sank into deeper recession in the first quarter of the year than originally estimated, with industrial production contracting by 0.4pc compared to the last three months of 2011.
Hopes of an early end to the slump have already been dented after a PMI survey indicated that Britain's manufacturing sector shrank at its fastest pace in three years in May, as orders nosedived.
The CBI's monthly industrial trends survey also showed that British factory orders deteriorated more than expected in May.
telegraph.co.uk
The Bank of England shied away from injecting more cash into the economy last week, but yesterday, central banker Adam Posen called for further purchases of assets, focusing on company loans.
The Office for National Statistics said today that manufacturing output dropped 0.7pc in April after a 0.9pc rise in March, disappointing forecasts that the latest figure would be flat.
The main drags were a drop in the manufacturing of basic pharmaceutical products and preparations, as well as in the category of other manufacturing and repair.
The wider reading of industrial output, which includes energy production and mining, was unchanged in April after a 0.3pc drop in March and fell short of forecasts for a monthly increase of 0.1pc.
A 13.6pc monthly jump in electricity and gas output caused by the coldest April since 1989 was offset by a 6.4pc fall in oil and gas extraction, due to the closure of a North Sea platform after a gas leak.
Britain sank into deeper recession in the first quarter of the year than originally estimated, with industrial production contracting by 0.4pc compared to the last three months of 2011.
Hopes of an early end to the slump have already been dented after a PMI survey indicated that Britain's manufacturing sector shrank at its fastest pace in three years in May, as orders nosedived.
The CBI's monthly industrial trends survey also showed that British factory orders deteriorated more than expected in May.
telegraph.co.uk
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