CBI: UK manufacturers end 2019 under a cloud of worry
The CBI has warned UK manufacturers are set to end the year on a low note.
Manufacturing output volumes in the three months to December fell at the quickest rate since the financial crisis as output expanded in only six of 17 sub-sectors, CBI Industrial Trends data revealed today.
The survey of 289 manufacturers showed boosts from electronic engineering and aerospace, but the rises were outweighed by motor vehicles, which led the fall in output amid weak global car sales.
CBI deputy chief economist Anna Leach said: “With manufacturers reporting that output is declining at a pace not seen since the financial crisis, alongside another month of softer order books, it is crucially important to rebuild business confidence in this sector.”
She urged the Prime Minister to use his “clear mandate to govern” as a tool to end the UK’s ongoing economic uncertainty.
“Firms will be looking for reassurance of the new government’s commitment to getting the UK economy fighting fit as it prepares to exit the EU,” Leach added.
Tom Crotty, group director at Ineos and chair of the CBI Manufacturing Council, said: “These disappointing figures are reflective of the widespread weakness in the global manufacturing sector and the impact of continued Brexit uncertainty in the run-up to the General Election.”
The survey found 41 per cent of manufacturers reported order books to be below normal levels compared to only 13 per cent who reported above normal. The balance of minus 28 per cent is below the long-run average of 13 per cent.
The balance of businesses saying their output was up versus down over the past three months was at its lowest level since September. Less than a quarter of businesses said output was up, while 39 per cent said it was down.
Meanwhile close to a third of firms said their stocks of finished goods were more than adequate, with only five per cent saying they were less than adequate. The balance, 24 per cent, is above the long-run average of 13 per cent.
Firms expect output volumes to fall at a slower pace, shrinking seven per cent in the first quarter of 2020, but look forward to prices picking up simultaneously.
The Confederation of British Industry (CBI) has urged Prime Minister Boris Johnson to use his election majority to “break the cycle of uncertainty” as it warned UK manufacturers are set to end the year on a low note.
Manufacturing output volumes in the three months to December fell at the quickest rate since the financial crisis and output expanded in only six of 17 sub-sectors, CBI Industrial Trends data revealed today.
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Anna Leach, CBI deputy chief economist, said: ““With manufacturers reporting that output is declining at a pace not seen since the financial crisis, alongside another month of softer order books, it is crucially important to rebuild business confidence in this sector.”
She urged the Prime Minister to use his “clear mandate to govern” as a tool to end the UK’s ongoing economic uncertainty.
“Firms will be looking for reassurance of the new government’s commitment to getting the UK economy fighting fit as it prepares to exit the EU,” Leach added.
Tom Crotty, group director at Ineos and chair of the CBI Manufacturing Council, said: “These disappointing figures are reflective of the widespread weakness in the global manufacturing sector and the impact of continued Brexit uncertainty in the run-up to the General Election.”
The survey found 41 per cent of manufacturers reported order books to be below normal levels compared to only 13 per cent who reported above normal. The balance of minus 28 per cent is below the long-run average of 13 per cent.
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The balance of businesses saying their output was up versus down over the past three months was at its lowest level since September. Less than a quarter of businesses said output was up while 39 per cent said it was down.
Meanwhile close to a third of firms said their stocks of finished goods were more than adequate, with only five per cent saying they were less than adequate. The balance, 24 per cent, is above the long-run average of 13 per cent.