Manufacturing Output Falls Dramatically

According to new figures from the Office for National Statistics, UK manufacturing output in November fell at its fastest pace since 1981.

Output was down by 7.4% from a year earlier and was 2.9% lower than in October. The fall reflects the increasingly fragile state of the economy - underlined by announcements this week of job losses at Nissan Motors in Sunderland, Marks and Spencer and Barclays Bank, Waterford Wedgewood going into administration and the final closure of Woolworths.

Commenting ahead of Monday’s job summit called by the Prime Minister, John Cridland, the CBI’s Deputy Director-General, said:

“We will continue to emphasise the need for measures to unfreeze the credit markets.

“If you want jobs, you need companies that can pay wages. That is why we need measures from government to tackle the credit crunch, and get finance flowing through the economy again. If we do not get credit moving again, good companies will fail, causing unemployment and lasting damage to the economy.

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