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EU manufacturing output shrinks

1 August 2012 Last updated at 16:45 BST

The eurozone manufacturing sector contracted at its fastest pace in three years in July.

Germany, Europe's industrial power base, posted one of the lowest scores.

Caroline Holmqvist, a senior advisor at CEEMET which represents Metal, Engineering and Technology-Based Industries around Europe told the BBC that a lack of bank lending is hindering the industry.