Worries regarding the outlook for Brexit is expected to continue to be a drag on the U.K. economy, with British manufacturers especially exposed to the ongoing uncertainties, noted Daiwa Capital Market Research in a report. This was certainly the message from the CBI Industrial Trends survey released today. The survey indicated a further marked fall in orders at the beginning of the third quarter.
With softness in domestic and external demand alike, the survey implied that overall orders in July dropped at the steepest rate for more than nine years, with order books below ‘normal’ levels to the greatest degree since 2010 too.
While manufacturers reportedly continued to increase inventories, the survey’s output indicator recorded the second straight double-digit fall, to -11, the first negative reading since March 2016. So, with manufacturers’ positivity regarding the year ahead at its softest since the post-referendum trough, companies continued to be inevitably downbeat regarding the investment and employment intentions.
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