UK manufacturers hit by weaker pound, survey reveals

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27th July 2016 11:16 - Industrial

UK manufacturers hit by weaker pound, survey reveals: A recent industrial survey by the Confederation of British Industry (CBI) has revealed that the confidence levels amongst manufacturers in the United Kingdom is at the lowest level its seen since the financial crisis post-Brexit vote. The results come after encouraging indicators that factories were beginning to benefit from a weaker pound.UK manufacturers hit by weaker pound, survey reveals

The Confederation of British Industry suggested that in the three months to July, optimism surrounding business prospects fell to levels not previously seen since January 2009.

Despite the growth in output in the lead up to the referendum being previously described as “solid”, the Confederation of British Industry suggested that anticipations for new orders in the next quarter were the weakest since January 2012.

In the coming months, factory bosses said that they are anticipating activity to slow down, and many predict cuts in jobs.

The survey – which questioned more than 500 manufacturers – revealed that the United Kingdom’s competitiveness within international markets improved at the strongest rate in more than six years. The biggest increase was seen in non-European markets.

In the next quarter, export orders are anticipated to increase at faster rate than average. Despite this, optimism for the next year dropped in comparison with that seen in April’s survey.

The Confederation of British Industry uncovered that worries about political and economic constraints overseas, as well as the Brexit vote, had impacted on sentiment.

The impact of political risks overseas on export orders was found to be at the highest level seen since 1983.

According to the Confederation of British Industry, only 5 per cent of manufacturers were more optimistic about business environment that they were three months ago, in comparison with 52 per cent who were found to be less optimistic.

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