The manufacturing sector's acute underlying weaknesses reinforce our view that we will need further interest rate cuts later in the year,

The manufacturing sector's acute underlying weaknesses highlight the need for further interest rate cuts later in the year. We do not necessarily call for, or expect, a further interest rate cut on Thursday. But the economy has clearly weakened and confidence is faltering. The MPC must be ready to act firmly to counter the downward pressures on the economy and to alleviate the plight of manufacturing.

Alleviating the plight of manufacturing, and countering the downward pressures on the economy, are now key priorities.

There is still a distinct danger of renewed recession in manufacturing.

What we are looking for is interest rate cuts to be beneficial to the market.

Today's manufacturing output figures were mediocre and disappointing overall,