8 October 2001, 09:26  OUTLOOK UK data to show continued weakness in the manufacturing industry

LONDON (AFX) - UK economic figures to be released this week are expected to show further weakening of the domestic manufacturing industry and to confirm market's expectation of an additional 25 basis point cut by the Bank of England, economists said. Manufacturing output data, which referred to August, were viewed as second-tiers data.
"We are still looking for another cut between now and year-end, either November or December, but we don't think these numbers in themselves will be sufficient to change the view one way or the other," said Jeremy Hawkins, economist at Bank of America.
Meanwhile the trend in producer prices output is also expected to steepen further, mainly as a result of a sharp drop in oil prices together with the appreciation in sterling/US dollar exchange rate. "The PPI have been soft for so long now that they don't really have any implication for the Bank of England," he added.

Economists' forecasts for UK economic figures due the week from today (percentage changes unless otherwise specified).
AFX CONSENSUS PREVIOUS
MONDAY OCT 8
Sept producer input prices (9.30 am)
month-on-month -0.5 -0.4
year-on-year -4.9 -2.3

Sept producers output prices (9.30 am)
month-on-month 0.0 -0.1
year-on-year -0.2 0.3

Aug industrial output (9.30 am)
month-on-month -0.2 -0.5
year-on-year -3.7 -3.2

Augmanufacturing output (9.30 am)
month-on-month -0.3 -0.9
year-on-year -3.8 -3.0

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