UK manufacturing below expectations

UK manufacturing output declined for a second consecutive month in September, prompting doubts about the strength of recovery in the sector.

The Office of National Statistics in England said output fell 0.2% in September from the previous month and was down 0.5% on a year-on-year basis.

Analysts had forecast a rise of 4% on the month.The fall was driven by a significant fall in electrical and optical equipment, basic metals and metal products

Sterling declined against the dollar following the report, slipping to $1.6760 after hitting $1.6860 earlier this morning.

The output figures contrast with the CIPS manufacturing index released earlier this week, which hit a near four-year high of 54.2 in October from 53.2 in September.