Hopes of British rate cut

HOPES of another cut in British interest rates were reinforced by a business survey which showed manufacturing industry continued to stagnate last month.

Firms shed staff for the second month in a row amid a lack of new orders, especially for investment goods, such as plant and machinery, according to the Chartered Institute of Purchasing and Supply.

In contrast, demand for consumer goods continued to pick up sharply.

But it was not enough to generate more than a modest increase in output, which was also held back by firms choosing to meet demand from the storeroom shelf rather than by stepping up production.