UK factories in 'near stagnation' after output growth decline

New orders also disappoint in December as firms blame continued slowdown on falling demand for consumer goods and machine tools

UK factories entered 2016 in a "state of near stagnation" following a decline in output growth and new orders during December.

Firms blamed the weaker than expected growth on falling demand for consumer goods and machine tools, which have experienced a long slowdown in growth since a peak in 2014 apart from a recovery in the summer.

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