Growth in UK manufacturing slows

Growth in the UK manufacturing sector eased in December, as worries about the credit crunch led to new orders hitting a near two-year low, a survey shows.

…The survey also indicated that the inflationary pressures facing the sector are easing although prices remain high.


Companies have paid higher prices for food products, fuel, metals, paper products, plastics and oil over recent months.

The Bank of England’s Monetary Policy Committee cut interest rates to 5.5% from 5.75% last month and many economists expect the central bank to lower the cost of borrowing further in coming months.

BBC