UK factory output lower than expected after fall in domestic and export orders

Higher borrowing costs and slump in demand contribute to 17th consecutive month of contraction

Britain's factories started the year on a weaker footing after 17 consecutive months of contraction, as higher borrowing costs and a slump in demand took their toll.

Factory output fell by more than expected in December after a drop in orders from domestic and export clients, according to the latest snapshot from S&P Global and the Chartered Institute of Procurement and Supply.