A Decline in Manufacturing Output

Aug 21, 2019
Author: Craig Burton
Craig acts as commercial partner for a wide range of corporate and non-corporate clients. He is also responsible for maintaining technical standards throughout the firm.
According to the latest CBI (the Confederation of British Industry) Industrial Trends Survey, manufacturing output has decreased to a standstill in the three months leading up to June 2019. The total number of orders submitted in the manufacturing books has been the lowest since October 2016, and this has been the slowest growth since April 2016.

The decrease in the manufacturing output in the three months to June was mainly because of the 83% reduction in motor vehicle production. This has been the largest drop since the financial crisis.

On the other hand, the manufacturing output outside the motor vehicle area is looking much brighter. Ten out of the other sixteen sectors grew, mainly in areas such as chemicals and food, drink and tobacco sectors.

Key facts:

  • There has been 83% reduction in motor vehicle production.
  • Manufacturing has decreased to a standstill in the three months leading up until June 2019.
  • Manufacturing output outside motor vehicle is looking much brighter as ten out of the other sixteen sectors grew. (CBI)

Tom Crotty, Group Director of INEOS and Chair of CBI Manufacturing Council, said: “Manufacturers are proving highly resilient in the difficult circumstances they face, but these results are further evidence of how ongoing Brexit uncertainty is holding back growth in key industries.

“The first item in the new Prime Minister’s in-tray must be to quickly resolve the Brexit deadlock. We can then look forward to working with the new government to address long-term challenges and identify new opportunities to enhance productivity in the sector”.

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Craig Burton

Partner, Sheffield