Trade And Production Figures Reflect Deep Structural Problems In Economy

12.00.00am GMT Tue 11th Mar 2003

Commenting on this morning's Index of Production and trade figures showing that manufacturing is still in recession and the trend trade deficit still widening, Matthew Taylor MP, Liberal Democrat Shadow Chancellor, said:

"With manufacturing still mired in recession and the trade deficit widening, Britain is performing worse than our major competitors in may areas."

"This reflect deep structural problems in the economy, with investment plummeting and jobs threatened."

"Gordon Brown likes to blame the rest of the world for our economic problems, but the evidence is clear that his red tape, tax complications, and a history of an overvalued pound have left us trailing the world."

"The Chancellor needs to take urgent action in the Budget to help British business or he will not have the money he needs for investment in health and education."

ENDS

Notes to editors

1. Manufacturing output in January was up 0.3% on the month. In the latest quarter it was down 0.5% on the previous 3 months, and 0.9% on the same 3 months a year ago.

2. Manufacturing output in January was still below 1995 levels.

3. Revisions to manufacturing output figures have lowered levels of output for October and December (November figures were unchanged).