According to a recent survey by CBI, the pessimism among small and medium manufacturers in Britain businesses in on the rise over rising uncertainties surrounding Brexit and politics. The CBI’s gauge for business optimism among SME manufacturers declined to -32 in Q3 from -28 during the previous quarter.

A decline in new orders, especially domestic ones, have been the main driver of the slide in optimism among small and medium manufacturers. Brexit uncertainty has caused a slowdown in the British economy, turning the outlook even bleaker for these businesses in the near future.

In addition, external risks such as trade tensions and an overall weakening in global economic growth are also weighing on this sector, adding to its woes. Small and medium manufacturers in Britain are also delaying their investment plans on account of the high uncertainties.

The survey reveals that nearly two-thirds of 240 participants listed political uncertainties and global economic slowdown as the main reasons for possible reduction in export orders in the coming future. The British economy had experienced a contraction in Q2 2019, but is expected to have turned around and witnessed moderate growth in Q3, but external risks to the manufacturing sector remain in focus.