Booming House Prices And Weak Manufacturing Leaves Economy Imbalanced - Cable

6.46.21pm GMT Mon 9th Feb 2004

Commenting on the fall in manufacturing output in December, Vince Cable MP, Liberal Democrat Shadow Chancellor, said: "With 750,000 jobs lost in manufacturing since 1997 people are justifiably anxious about their jobs."

"The economy continues to be fundamentally imbalanced with house prices booming and manufacturing stagnant."

"December's fall in manufacturing output threatens that economic recovery will be based on consumer borrowing alone."

"Britain's twin problems of runaway consumer spending and weak manufacturing cannot be resolved by the Bank of England alone."

ENDS

Notes to Editors:

1. Manufacturing output in December was down 0.1% on November.

2. Manufacturing output is now 4.8% below 2000 levels.