Bleak outlook for UK economy as manufacturing shrinks to 10-year low

The bleak state of the British economy shows no signs of letting up as the latest survey revealed that the manufacturing sector shrank the most in almost a decade last month.

The purchasing managers' index dropped for the third month in a row, falling from 45.9 in June to 44.3 in July, worse than analysts had expected and the lowest monthly figure since December 1998. Any figure below the 50 mark represents a contraction rather than an expansion of activity.

The grim figures add to the prospect of the UK entering its first recession in almost two decades.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/08/01/bcnmanuf101.xml


Always amuses me how it's perceived as 'completely out of the blue' 
Anyone with half a brain could've forecasted this months ago.

It was predicted in underground and alternative circles YEARS ago

but the mainstream poo pooed it and refused to heed the warnings

of "the freaks".

Production of material objects in factories by the masses in blue overalls

IS important to "an economy" but its not the whole apple.If you cannot sell those produced goods because they are too pricey or they arent appealing
or desirable enough then they just heap up and production ceases
along with all the shops selling them often.
SALES as Uncle Alb says are critical.
If it sells youve won if it doesnt youve lost.