UK manufacturers expect production and new orders to decline in the coming three months, according to the Industrial Trends Survey, released by the Confederation of British Industry, on Thursday.
Due to a fall in domestic and foreign demand, a net balance of -12 percent said new orders fell in the quarter to January compared to -3 percent in the October quarter.
A balance of -17 percent expects total new orders to fall at a slightly quicker pace in the next quarter.
Manufacturers said output volumes were broadly flat in the quarter to January but a net 24 percent expect production to fall once again in the coming quarter.
Further, firms expect headcounts to be broadly flat in the next quarter after a net 10 percent reporting a fall in number of employed persons in the three months to January, but this was the slowest since October 2019.
The survey showed that almost half of manufacturers, the highest share since January 1975, were concerned that access to materials or components may limit their output over the quarter ahead.
"While the start of 2021 is challenging, the COVID-19 vaccine drive brings with it a real sense of optimism for the future," Tom Crotty, Group Director at INEOS and Chair of the CBI Manufacturing Council, said. The manufacturing sector can be an engine for UK's economic recovery post-covid and firms are keen to work with government to make this happen.
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