It seems that the long-running euro debt crisis has finally affected Britain's economy to a significant extent as it has been told that factory output has touched a dismal level in the last nearly two years.

Looking at the negative scenario in the economy, EEF, the main trade body for UK manufacturers, has even lowered its expectations for growth to 0.9% from 2.2% in September. The credit results in disheveling the economy. Against 27% of companies in the last three months, there are only 12% companies left who are experiencing rise in production.

Even, a significant drop of 4% in the three months to December has affected the levels of production and that’s why the report has sent worry signals in the society about the future. It has been known that manufacturing plays a key role in stimulating the growth of economy, but the dithering condition of UK’s economy has showed that even manufacturing sectors have not been able to bear economic disabilities.

“The signs of caution that had been emerging through the second half of this year have clearly become more entrenched as global growth concerns have escalated”, said EEF Chief Economist Lee Hopley, who is of the say that this dismal performance has affected confidence of investors. Among all, the makers of metal products, electrical and electronics were told to have experienced massive loss.

There has been negligible growth in the past 12 months and when collaborated with the reduced public spending, the economy of Britain has been affected significantly. Perhaps, that’s why the forecast of economic growth has also reduced.

With lingering fears of recession and long running debt crisis, there seems to be tough time ahead of Britain. Concrete measures are required to be directed towards economic development so that the lost confidence of costumers is regained soon.