British Manufacturing Outlook Worsens as Investment Turns Negative
According to a recent survey by trade body Make UK, manufacturing in Britain is expected to continue remaining weak, adding more pressure to the already bleak economic outlook. New orders and investment in Britain’s manufacturing sector have been impacted severely by the ongoing global economic slowdown and Brexit uncertainties.
Britain’s manufacturing forecast for 2019 has been slashed to a mere 0.1% and the situation is not expected to improve much in 2020 either, with a manufacturing forecast of 0.2%. According to Make UK and BDO’s Q3 Manufacturing Outlook survey, despite a weakening Pound, export orders have fallen considerably to 6% while domestic orders have turned negative at -6%.
Total order balance has declined to 2% in Q3 2019 from 8% in Q2 and 16% in Q1, while manufacturing output has fallen to 4% in the third quarter from 17% in the previous quarter. Investment in manufacturing has turned negative while recruitment continues to decline into this year.
The Make UK survey takes into account the possibility of a soft Brexit with a deal in place in its forecasts. In the event of Britain leaving the EU without a deal, these forecast figures could worsen further.
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