David Kern Firm Quotations

Today's manufacturing output figures were ... worse than the market expected. The sector continues to stagnate and is persistently failing to sustain a recovery. The figures also confirm that the sector was in technical recession in the first half of 2005, ... The manufacturing sector's acute underlying weaknesses reinforce our view that we will need further interest rate cuts later in the year.

The manufacturing sector's acute underlying weaknesses reinforce our view that the Government must act firmly and rapidly to remove the threat of further tax increases on business,

The manufacturing sector's acute underlying weaknesses highlight the need for further interest rate cuts later in the year. We do not necessarily call for, or expect, a further interest rate cut on Thursday. But the economy has clearly weakened and confidence is faltering. The MPC must be ready to act firmly to counter the downward pressures on the economy and to alleviate the plight of manufacturing.

Although earlier estimates have been revised up slightly, the new figures confirm that the sector was in technical recession in the first half of 2005. In spite of the minimal increase in output seen in July, the sector is persistently failing to establish a sustainable recovery.