British business output falls to lowest this year

BRITISH business output has fallen to its lowest level this year as consumers react to interest rate rises, a survey showed yesterday.

The BDO Stoy Hayward output index, which closely predicts movements in gross domestic product a quarter ahead, fell 0.3 points in August to 101.5.

The index has fallen sharply since its peak of 103.7 in April this year, implying a short-term fall in business confidence driven this month by poor retail sales.