UK manufacturers expect production to fall further over the coming three months, according to the Confederation of British Industry’s (CBI’s) latest research.
The December’s Industrial Trends Survey shows a net 32% of manufacturers report order books being below their usual level. This is the worst result since October last year.
Demand for exports remain “depressed”, with a balance of 32% of respondents seeing export orders fall below normal. This is the lowest level since January 2010 and well below the long-run average.
In addition, a net 8% of manufacturers expect to cut their production in the next quarter to bring it into line with their weaker order books.
Ian McCafferty, the chief economic adviser at the CBI, comments: “Conditions in the UK manufacturing sector remain difficult, with demand both at home and abroad subdued.
“The weaker export performance no doubt reflects ongoing instability in the euro area, our biggest export market, and its knock-on impact on prospects for the real economy.”
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