Britain’s manufacturing output dropped at the fastest pace since mid-2020 over the three months to December.
The Confederation of British Industry's (CBI) latest Industrial Trends Survey showed output volumes down by a weighted balance of minus 25%, against minus 12% in the quarter to November.
Output was lower across 15 of the 17 sub-sectors across the industry, the CBI noted, with order books dropping “markedly” against November, from -19% to -40%.
“Manufacturers are facing a perfect storm of weakening external demand on the one hand, amid political instability in some key European markets and uncertainty over US trade policy,” CBI economist Ben Jones commented.
“And on the other hand, domestic business confidence has collapsed in the wake of the Budget, which has increased costs and led to widespread reports of project cancellations and falling orders.”
Output was also expected to face another “steep” drop over the coming three months, the CBI added.