17 December 2019

The Guardian: UK manufacturing output falling at fastest rate since 2009, says CBI

Manufacturing output in the UK tumbled this month at the fastest rate since the 2008 financial crisis as uncertainty surrounding Britain’s trading relationship with the EU and the outcome of the general election hit domestic and foreign orders.

According to the latest monthly CBI industrial trends survey, the volume of manufacturing production in December dropped at a rate not seen since September 2009, keeping the UK sector deep in recession.

The prospect of looser trading arrangements with the EU and the potential for higher import tariffs following Brexit, which remains a possibility from 2021, was cited by manufacturers for the weakness in domestic order books. Export orders dropped from the previous low point in November as Brexit uncertainty and a global slowdown in manufacturing output took its toll.

The survey of 289 manufacturers found that output expanded in only six out of 17 manufacturing sectors. Aerospace firms enjoyed a boost along with the electronic engineering sector.

But the gains were more than offset by steep falls in car production, which has suffered amid the switch to electric cars from increasingly unpopular diesel cars, which dominate the UK’s output.

The survey found that a balance of firms’ responses hit -28% following a slump to -35% in the export order balance. [...]

Full article on The Guardian

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