According to the Office for National Statistics (ONS), the UK has now contracted for four of the past five months and flatlined for the year as a whole as the country’s manufacturers suffered their worst 12-month stretch since the financial crisis.
The economy remains smaller than it was in September 2011 and is still 3.3pc below its pre-crisis peak in 2008. Michael Saunders, UK economist at Citi, warned of a “triple-dip and stagflation”, adding that in terms of GDP per head “the UK is even underperforming versus Japan’s lost decade”.
The weak figures sent markets into a panic, with sterling plunging. In London, the pound closed down 0.71 cents versus the euro at €1.1730.
Information, diagnosis and cure, all in one single day.
Manufacturing getting pasted by imports, can’t make exports, economy thus shrinking. To which the answer is raise import prices, lower export prices and manufacturing will recover and the economy grow. What actually happens? Sterling falls: job done.
Amazing things markets.