The Office for National Statistics has said that output from the UK’s manufacturing sector slumped more than expected in April as the weak domestic economy and worsening situation in Europe weighed on demand. This official data has dampened hopes that Britain will escape recession in the second quarter of this year. The ONS said that manufacturing output fell 0.7% in April from the previous month, which is the fourth consecutive fall so far this year. Annually speaking, manufacturing output was 0.3% weaker. These results will disappoint as economists had expected output to increase 0.1% on the month and 0.5% on the year.

Earlier this month the Purchasing Managers’ Index for the manufacturing sector, indicated that output continued to fall in May, with the PMI contracting to its lowest level in three years. The importance of the manufacturing sector is stressed as it accounts for 10.2% of the UK’s gross domestic product. The sector is being dented by slowing international demand mainly in part because of the euro zone crisis and as Europe is the UK’s biggest trading partner this poses many problems. It is also being damaged by flagging domestic demand as the government reduces its spending and consumer purchasing power and low wage growth and high inflation rate. Economists have said the weakness in manufacturing output would put more pressure on the Bank of England to undertake another round of bond buying.