An unexpected shrink in the UK's manufacturing sector during February, has led to fear of a triple-dip recession. This downfall in factory out put also lead to the pound falling in value to $1.50 for the first time in over two years. The monthly check-up on the UK manufacturing industry is the first indicator of the month of the UK's economy and this February the indication is that our economy is not doing so good.
In October 2012, we emerged out of the double dip recession after a 1% growth which boosted confidence, however these latest figures concerning the manufacturing industry is set to cause a fall in confidence in addition to the UK being stripped of it's Triple-A credit rating. For those who don't know, the triple-A credit rating is the highest rating assigned to the bonds issued by a country by credit rating agencies. As if a double dip wasn't bad enough a triple dip would be worse and the chances of it occurring are even more likely after the UK economy shrank by 0.3% in the closing three months of 2012. The weakness of the manufacturing sector is one of the major factors that has dragged our economy in this state.
If output does fall in the opening three months of 2013 then the UK will officially enter its third recession since the global financial crisis back in 2008. Therefore we enter a triple-dip recession, unfortunately.
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