UK factory output slumps at fastest rate since May 2020

Analysts say manufacturing recession has begun as new orders fall amid soaring inflation and economic uncertainty

UK factory production slumped in August at the fastest rate since the early Covid-19 pandemic lockdown month of May 2020 after manufacturers suffered a sharp reversal in new orders from domestic and overseas customers.

Analysts said a manufacturing recession had begun after firms reported that clients had postponed, rescheduled or cancelled agreements" in response to economic uncertainties, soaring inflation and component shortages.