Manufacturing drop 'raises double-dip recession fears'

Figures showing a drop in UK manufacturing have added to fears that a double-dip recession could take place.

This is according to senior analysts for Caxton FX Duncan Higgins, who noted that the data - which showed production fell 0.9 per cent during the January - were ’hugely disappointing’.

’Of real concern now is the prospect of economic contraction,’ he remarked, adding ’the prospects for the UK recovery are not particularly uplifting at present’.

Mr Higgins explained that the statistics are likely to prompt the Bank of England to reconsider its approach to quantitative easing so as to ’prevent the economy recovery from derailing’.

Earlier this month, it announced that the asset purchasing scheme will continue to be on hold, with £200 billion having been spent through the initiative so far.

The Bank’s Monetary Policy Committee also opted to keep the base rate unchanged at a record low of 0.5 per cent.ADNFCR-2318-ID-19663498-ADNFCR