|UK MANUFACTURING SLUMP DEEPENS AS EXPORT ORDERS FALL|
Oranjestad, August 1, 2012 - U.K. manufacturing shrank the most in more than three years in July as export orders slumped, indicating the economy’s recession continued to deepen at the start of the third quarter.
A factory-output gauge fell to 45.4 from a revised 48.4 in June, London-based Markit Economics said today. The reading was weaker than any of the 30 forecasts in a Bloomberg News survey. The decline was led by weaker demand in the euro area, where a separate index showed manufacturing shrank for a 12th month.
“There is a lot of ground to recover,” said Ross Walker, an economist at Royal Bank of Scotland Group Plc in London. “Alongside distinctly underwhelming anecdotal evidence from consumer-facing parts of the economy, this bodes ill for hopes of a rebound in third-quarter gross domestic product.”