UK Factory Output Declined for Fifth Straight Quarter - Forex News by FX Leaders
UK Factory Output Declined for Fifth Straight Quarter

UK Factory Output Declined for Fifth Straight Quarter

Posted Friday, February 21, 2020 by
Arslan Butt • 1 min read

A recent report by the CBI indicates that the manufacturing sector in Britain continued to exhibit signs of weakness despite Boris Johnson’s re-election that helped improve the sentiment in other sectors of the economy recently. Factory gate output declined for the fifth consecutive quarter, but the pace slowed down during January.

Among 320 firms that participated in the survey, only five out of 17 sub-sectors in manufacturing experienced a growth in output. The decline was driven by a reduction in volume of production in food, drink and tobacco businesses.

On the positive side, total and export order books reported a slight improvement during January, rising to the highest levels seen in six months. In addition, the outlook among manufacturers has also improved, with businesses expecting output to recover in the coming three months.

However, reigning uncertainties surrounding Brexit are likely to keep the manufacturing sector in Britain under pressure until Britain and the EU finalize their trade deal. Some momentary hope for the sector can be forthcoming in the upcoming budget due to be presented on March 11, in case the government announces measures to support the sector.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of