A recent CBI survey reveals that British manufacturing orders are below average, with manufacturers expecting price increases and a decline in output amidst ongoing economic pressures.
According to the latest survey from the Confederation of British Industry (CBI), British manufacturing is experiencing significant challenges, with orders remaining well below average levels. The survey indicates that in February, the monthly order book balance for manufacturers was -28, slightly improved from last month’s -30 but still far below the normal average of -14. This situation reflects a dismal outlook for manufacturers, who face an environment of low demand amid rising costs.
Additionally, many firms are indicating that they anticipate raising their prices in response to increasing cost pressures, contributing to an overall negative sentiment regarding future output. As companies navigate these challenges, job cuts have emerged as a common response to reduce overheads, although some business surveys have suggested a faint glimmer of optimism among companies, potentially linked to a more favorable economic outlook following the resolution of uncertainties around the government’s autumn budget.
Cameron Martin, a senior economist at CBI, noted that the persistent low order rates indicate that manufacturers are likely to continue facing these pressures in the near term. With household finances also being described as “dismal,” the combination of these dynamics poses significant implications for the UK economy as it grapples with inflation, cost-of-living concerns, and shifting market expectations, all while manufacturers brace for further challenges ahead.
