CBI: Confidence among manufacturers slump

| October 28, 2011 | 0 Comments

According to the Confederation of British Industry (CBI), confidence among UK manufacturing firms has slumped as a result of the debt crisis in the euro zone, as well as a fall in expectations for future growth.

The latest industrial trends survey by the employers’ group established that 30% more businesses were pessimistic about the future than optimistic, while companies expected a fall in orders, output and staff.

The combined order book for the companies surveyed dived to -18 in October from -9 the previous month – the lowest level for a year.

Furthermore, expectations for output in the next quarter slumped to -11 this month from +9 in September – the lowest level since July 2009.

The latest report has fuelled concern that the UK economy may be headed for a double-dip recession.

Commenting, Ian McCafferty, the CBI’s chief economic adviser, said: “Manufacturers saw modest growth in orders and production over the past quarter.

“However, sentiment has deteriorated sharply and firms expect sizeable falls in activity over the next three months. The quarterly fall in sentiment is the largest since the height of the recession in mid-2009.”

The figures are based on the CBI’s quarterly survey of industrial trends, which was conducted between 26 September and 12 October, and questioned almost 450 manufacturing firms.

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