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May 29, 2017

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Shock drop in UK factory orders fuels doubts regarding economic recovery

LONDON -- British factory orders posted a surprise fall in October, the CBI's industrial trends survey showed on Wednesday, fueling fears that a recent timid economic recovery may not last.

Britain probably came out of recession between July and September. Third-quarter gross domestic product figures due on Thursday are expected to show solid growth, boosted by a one-off rebound after an extra public holiday hit output in June.

But Bank of England Governor Mervyn King warned on Tuesday that a slowdown in emerging markets posed a new threat to the British economy, adding that the central bank was ready for more stimulus should positive signs of recovery fade.

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