UK Manufacturing Slump Deepens: Output Drops, Job Losses Continue Amid Gloomy Economic Outlook
• UK factory output fell more than expected in December, after 17 consecutive months of contraction • Drop due to higher borrowing costs and slump in domestic and export orders • Business optimism among manufacturers at 12-month low due to economic outlook and borrowing costs • Job losses recorded for 15th straight month as businesses push for cost savings • Financial markets expect Bank of England to cut interest rates sharply this year as inflation falls and economy struggles