The UK manufacturing is passing through its worst phase. It recorded its sixth consecutive fall in monthly production touching the lowest figure since 1980.

Order books were also in the worst state for the first time in last 30 years. The shrinking labour market was pointing to the onslaught of a full-blown recession, placing pressure on the Bank of England to lower interest rates.

According to a release from the Office for National Statistics, the fall in manufacturing output was 0.4% in August 2008, making it the sixth consecutive fall and longest negative growth spell since 1980. The worst affected sector was the electrical and equipment which registered 3.1% fall in its output. The output in food, drinks and tobacco industry was down by 1.6% while it was less by 2.3% in the car industry and transport sector.

As per the official definition of recession, Britain could avoid negative economic growth in two consecutive quarters so far. But the analysts are apprehensive about third-quarter gross domestic product (GDP) which they feared could be minus 0.3%

According to the UK economist Alan Clarke, the grim economic situation was heading to worse and figures of output suggested that manufacturing sector was contracting while services industry was on its knees. He predicted four quarters of negative GDP growth and slow climb back thereafter.

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