More gloom for UK economy
Latest trade statistics show that the UK's deficit on trade in goods plunged to £3.6bn between October and November 2002, the worst figures this year.
These poor figures, combined with a 0.2% fall in producer prices highlighted the seriousness of the situation facing the UK’s beleaguered manufacturing sector, according to the Centre for Economics and Business Research.
The CEBR said September trade figures suggested an improved performance for UK exports, but the latest figures suggest this will not materialise.
Rather, the consultancy said recent interest rate decisions by the Bank of England and the European Central Bank would see the UK’s trade deficit grow.
‘It looks like Monetary Policy Committee will have to face a difficult decision early next January as imbalances in the UK economy make themselves more evident by the day,’ the CEBR said.