According to data published by the Confederation of British Industry (CBI), manufacturing output in the UK has stabilised in the three months to August.
The Industrial Trends Survey, published by the CBI, revealed that 15% of UK manufacturers reported total order books to be above normal. On the other hand, 38% stated that they were below normal, leaving a balance of -13% compared to -34% last month.
Also, 11% of firms stated that their export order books were above normal, compared to 26% below normal. This gives a balance of -15%, which is up from the figure of -32% recorded in July. The CBI found that paper, printing and media industries slowed growth, whereas the chemicals, mechanical engineering and plastic producers all grew.
Chief Economist at the CBI, Anna Leach, commented: ‘Despite signs of stabilisation in the data this month, UK manufactures remain on the receiving end of a double whammy: the slowdown in the global economy and Brexit uncertainty. Trade tensions between nations such as China and the US only exacerbate the demand uncertainty facing UK manufacturers.’
Quote from Nigel Holland:
“While it is good that this data shows stabilisation, the trend will inevitably fall again as the Brexit deadline approaches, unless a suitable deal is agreed.”