Manufacturing in the UK has slid into recession, with output falling for the consecutive quarters.

The third-quarter fall was 0.3 per cent, making a cumulative fall of 0.9 per cent this year.

Construction output, while not said to be in recession, fell by 2.2 per cent – more in a single quarter than in-recession manufacturing.

As for the economy as a whole:

The UK economy grew by 0.5% between July and September, the Office for National Statistics (ONS) says, a slower pace than the previous quarter.

The rate was also lower than the 0.6% growth predicted by many analysts. The economy had grown by 0.7% in the second quarter of the year.

Part of the slowdown was due to the biggest fall in construction output in three years, a drop of 2.2%.

The service sector, the biggest part of the economy, grew by 0.7%.

However, output in the manufacturing sector declined by 0.3%.

“The slowdown is being led by the manufacturing sector, which is seeing a renewed recession as output has now fallen for three consecutive quarters, suffering a 0.3% decline in the three months to September,” said Chris Williamson, chief economist at research firm Markit.

“Manufacturing output has so far fallen 0.9% this year. Producers are struggling as weak demand in many overseas markets, notably China and other emerging nations, is being exacerbated by the appreciation of sterling.”

Source: UK economic growth slows to 0.5% in third quarter – BBC News

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