Britain and Europe share bleak economic outlook as report shows manufacturing dropping at biggest rate for three years.
Britain and the rest of Europe are heading for a deeper recession after figures showed manufacturing output slumped at its fastest pace for three years. A dearth of new orders in the UK has added to a sense of panic among manufacturers, which have been left scrambling to keep their factories busy and delay laying off workers, according to a report into the industry. The UK chancellor, George Osborne, has indicated that a series of infrastructure projects will get the green light later in the summer as the Treasury looks to haul the country out of its recession. However, the projects are expected to be low-key and unlikely to have a major impact on growth.
Chris Williamson, chief economist at Markit, said: “The data indicates that the sector is contracting at a quarterly rate of around 1%, suggesting that manufacturing will act as a major drag on economic growth in the second quarter.
“All four of the largest eurozone nations are now reporting worryingly sharp downturns in their manufacturing sectors.”