UK manufacturing orders drop as near-term outlook darkens
Britain’s manufacturers suffered a fall in orders in November as governments tightened coronavirus restrictions in a bid to halt the rapid spread of coronavirus, a survey has shown.
The CBI’s monthly measure of manufacturing order books fell to a score of minus 40 in November. It had picked up sharply to minus 34 in October, although that was still well below the long-run average of minus 14.
Anna Leach, CBI Deputy Chief Economist, said: “Order books have softened again as global demand has been hit by intensified lockdowns, and manufacturers have trimmed their expectations.
“Key to stabilising trading conditions for manufacturing firms will be getting the pandemic under control through further investment in mass testing.”
Manufacturing firms’ pessimism grows
The overall measure of output improved in November, the CBI said. But businesses in the manufacturing sector became more gloomy about the next three months. Output expectations dropped sharply.
It comes with England entering its third week of lockdown. Countries around the world have also put in place new Covid restrictions.
Positive news about vaccines in recent weeks have cheered financial markets. But companies remain worried about the rest of the winter.
Chancellor Rishi Sunak has extended economic support, including the wage subsidy “furlough” scheme. Leach said the extension is “very welcome”.
Nonetheless, Tom Crotty, group director at Ineos, said: “Manufacturers up and down the country are continuing to face very difficult circumstances as we move into the winter.”