MNI BRIEF: UK Manufacturers See Orders And Output Slump

UK manufacturing saw both output and orders falling sharply in the three months to October, with sentiment deteriorating and investment plans cut back sharply,  the quarterly CBI Industrial Trends Survey showed on Thursday. 

The downturn was broad-based across sub-sectors, but was driven by metal products, metal manufacture and electronic engineering. A balance of firms expect output to fall again over the quarter to January.  

Demand conditions weakened as total new orders slid through the quarter (-20%, from -17% in July), declining at the fastest pace since July 2020 for both domestic and export orders. The main constraint on investment was uncertainty about future demand. (See MNI INTERVIEW: UK Consumer Savings Still Drag on Economy- ONS )

Ben Jones, Lead Economist, CBI, said “manufacturers are finding the going tough. Order books are weakening, cost pressures remain stubbornly high, and uncertainty is rising ahead of the Budget. This is making businesses increasingly reluctant to commit to new hiring and investment."

UK Firms Investment Intentions

Source: CBI