Worrying manufacturing decline highlights need for action

Commenting on the July manufacturing prices figures published today by the ONS, David Kern, Economic Adviser to the British Chambers of Commerce, said:
 
"The July falls in manufacturing output and in total industrial production were bigger than expected. It is disappointing that the benefits of a weaker pound in terms of improved export competitiveness have not been sufficient to offset the negative effects for manufacturing of a weakening home market.
 
"The figures indicate that GDP as a whole is likely to record a decline in the third quarter of the year, and we are now very probably in technical recession. A major economic downturn can still be avoided, but early corrective action is needed. The MPC must not delay too long before it starts cutting interest rates."
 

Ends

Media Contacts:

Fiona Cunningham
Tel: 020 7654 5812
Email: f.cunningham@britishchambers.org.uk

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Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk

Notes to Editors:

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.