The Office for National Statistics (ONS) has informed that the industrial output of the country has decreased by 0.4% in the month of January. Analysts had expected a rise of 0.3% for the same period. Manufacturing output has also been hit by the same reasons. There has been a massive fall of 0.9%.

According to officials, the cold weather in UK has been the major factor of such unexpected result. Although December, 2009 has represented a very strong figure but it was not to be in January. Moreover, this has been the biggest monthly drop since August last year.

Despite manufacturing industry's strong decline, output from the machinery, equipment, food, drink and tobacco industries has been reasonably good. They have reported a small rise in production.

The ONS has also informed that the huge hike in Value Added Tax has been the other reason of reduction. Because some of the firms had rushed to complete their orders in the month of December only just before the rise in VAT in the following month. But the quarterly output has improved to 1% in three months to January.