UK manufacturing output fell sharply in September, according to official figures, while the global credit squeeze hit the services sector.
Output slid 0.6% on a monthly basis in September and was flat in the third quarter, held back by the strong pound, high interest rates and oil prices.
Services activity slowed to a 53-month low as the global lending crisis affected leading finance institutions.
One analyst said the data strengthened the case for an immediate cut in rates.
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