UK - Factory production slumps to lowest since 1992

UK manufacturing production unexpectedly slumped in August to the lowest level since 1992, a sign the economy is struggling to shake off the recession. Factory output dropped 1.9% from the previous month. Economists predicted a 0.3% increase. The index of manufacturing fell to 87.8, the lowest in 17 years. BOE policy makers have cautioned that the credit squeeze and weak demand at home and overseas may hamper the economy’s escape from the worst recession in at least a generation. The central bank will keep up its GBP175bn (US$280bn) asset-purchase plan this week as officials gauge the strength of the recovery. (Bloomberg)