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UK manufacturing output shrinks unexpectedly

British manufacturing output unexpectedly shrank in May, official data showed today, making it less likely the economy returned to growth in the second quarter.

Manufacturing output fell 0.5% in the month in May versus expectations of a 0.2% rise. April's figures were revised down to show no change instead of the 0.2% rise initially reported. On the year, factory output fell 12.7%.

The wider industrial production measure, which accounts for 17.2% of the economy, also fell unexpectedly by 0.6% against forecasts of a 0.2% rise.

The worse than expected data are likely to boost expectations the Bank of England will expand its £125 billion sterling quantitative easing scheme later this week as it tries to pull Britain out of recession.

Some economists have been forecasting a turnaround in manufacturing and the wider economy following better survey data but these figures are likely to heighten concern the economy is still some way from a durable recovery.

The Office for National Statistics said the monthly fall in manufacturing was driven by a 2% decline in the paper, printing and publishing industries - sound recordings were particularly hit - and a 1.7% fall in the machinery and equipment industries.