UK manufacturing gloom deepens
CBI survey shows optimism falling on output, orders and jobs
Manufacturing growth is expected to slow over the next three months following the sharpest fall in company optimism since January 2009, according to the Confederation of British Industry.
There are now as many manufacturers expecting orders to decline over the next three months as those expecting an increase, according to the CBI’s industrial trends survey of 506 companies, conducted between June 28 and July 13. This is the weakest outlook recorded since January 2012 when economic growth began to stagnate.
The findings are consistent with the Markit/CIPS report published on Friday. This suggested the outlook for manufacturing — though weaker than before the EU referendum — was more positive than for the service sector, where optimism slumped to its lowest level since spring 2009, though remained much higher than the trough in 2008.
Neither the CBI survey nor the Markit/CIPS data covered construction, which is expected to be hardest hit by Brexit. Markit data for this sector will be published in early August, providing the first concrete indication of how the sector is faring.