Figures released by the United Kingdom's Office of National Statistics show that the production of leather, textiles and clothing fell by a considerable 5.9% during the first quarter of 2001, reflecting the continuing slowdown in demand for manufactured goods on a global scale.

The figures were recorded against the backdrop of a 0.7% decrease in manufacturing output during the same period – the fastest pace of shrinkage for two years. The next highest fall in output, after leather, clothing and textiles, was noted in electrical and optical equipment (down 3.3%).

With the release of the news, the Bank of England’s Monetary Policy Committee immediately cut interest rates by 25 basis points to 5.25%.