Outlook Deteriorates Among Small Business Manufacturers in Britain
According to a recent survey by the CBI, small manufacturing businesses in the UK anticipate their output to fall to the lowest level in over 30 years over the upcoming three months as a result of the ongoing coronavirus pandemic. In the three months to April, these businesses already registered the sharpest decline in output and jobs seen since the 2009 financial crisis, but the situation is expected to worsen in the coming months.
These signs point to a steep downturn in the UK economy in the near future, driven by the pandemic. According to chief economist at CBI, Alpesh Paleja, “SME manufacturers are seeing a sharp shock to activity due to the COVID-19 outbreak, with expectations signalling a sharper downturn to come.”
The decline in output expected over the coming quarter has been the most severe one ever recorded since the survey began in 1988. Unlike several other countries across Europe and the world, the UK is yet to decide on reopening its economy by easing lockdown restrictions.
Government estimates have already warned that overall economic activity in the country could contract by over one third in Q2 2020, the sharpest decline Britain has ever seen.
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