Industry optimists unfazed over possible triple-dip recession

Though UK business leaders insist that the country's manufacturing sector has the potential to recover, a sharp fall in output was seen yesterday raising the spectre of a ''triple-dip'' recession.

According to official figures, output was down in October at the fastest pace since June, adding to fears that the wider economy faced renewed slump this quarter.

Britain has emerged through two recessions in the past four years, exiting the last one as recently as between July and September.

However, in a grim warning chancellor George Osborne pointed to  flagging economic growth in the coming months in this week's Autumn Statement, even as officials projected another contraction at the end of 2012.
 
The Office for National Statistics (ONS) data yesterday showed factory output was down 1.3 per cent in October, much lower than the 0.2 per cent dip projected by analysts.

The wider measure of industrial production was also down, reflecting a record fall in oil extraction although this had much to do with maintenance on North Sea rigs.

Describing the figures as ''bleak'', David Kern, chief economist at the British Chambers of Commerce, representing thousands of businesses, said they increased the risk that the economy would decline in the fourth quarter.