A survey conducted by the Confederation of British Industry (CBI) has revealed that manufacturing output in the UK experienced its largest decline in nearly three years in the three months leading up to August. New orders also continued to decrease, dropping from -9 to -15.
The net output balance for the three months ending in August fell from +3 in July to -19, marking the lowest level since September 2020.
The net balance reflects the difference in the proportion of factories reporting rising output versus those reporting falling output.
Among the 17 sub-sectors of manufacturing, 15 saw a decline in output, with the automotive and mechanical engineering industries being the weakest performers.
Martin Sartorius, Chief Economist at the Confederation of British Industry, commented, “With output shrinking at the fastest pace since the onset of the pandemic and order books deteriorating, this quarter’s survey paints a depressing picture. However, the easing of price pressures should offer some relief to many manufacturing businesses and the broader economy.”
