UK manufacturers see output falling for first time in three years, says CBI

UK manufacturers expect production to fall in the next three months, according to the latest Industrial Trends survey from the Confederation of British Industry.

Expectations for manufacturing output deteriorated to -6 from +5 in October, marking the first expectations of a drop since November 2012.

Rain Newton-Smith, CBI director for economics, said: “Poor export performance is weighing on the UK economy, as manufacturers are held back by a strong pound and a weakening global growth outlook.

“To ensure UK manufacturers can pack a punch on the world stage, business will want to see the government prioritise areas of growth enhancing spending – on exports, infrastructure, skills and innovation – in next week’s Spending Review.”

The total orders balance of its monthly industrial trends survey rose to -11 in three months to November, an improvement from a balance of -18% in October.

“A still weak CBI industrial trends survey for November indicates that manufacturers are continuing to struggle and fuels concern that manufacturing output could contract yet again in the fourth quarter,” said Howard Archer, chief European & UK economist at IHS Global Insight.