SteelForge PLC manufactures industrial turbines. Due to a negligent manufacturing defect, a turbine explodes at a client's factory, causing physical damage to the factory and halting production for a month, resulting in £500,000 of lost profits. Under the tort of negligence, what type of loss is the £500,000 lost profit considered, and is it recoverable?

In the tort of negligence, 'pure economic loss' (financial loss without physical injury or property damage) is generally not recoverable. However, if the financial loss (lost profits) is a direct consequence of physical damage to the claimant's property (the factory), it is termed 'consequential economic loss' and is recoverable, as established in Spartan Steel & Alloys Ltd v Martin & Co (Contractors) Ltd.