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UK manufacturing output saw its biggest drop since 2009. Data released on Monday by the Confederation of British Industry showed that Britain's manufacturing sector remains mired in recession following months of weak demand from foreign customers and depressed demand at home.
CBI's monthly survey showed UK manufacturing output volumes fell to -15 in the three months to March from 0 in February. The total order book balance improved slightly to -14, as expected compared to -17 in February. Export orders were unchanged in the three months to March at - 19.
By contrast, expectations for output for the next three months rebounded to +23 from +11, its highest level in 13 months, suggesting that UK manufacturers expect a swift turnaround in activity over the next three months.
"Whilst total order and export books remained steady, a drop in output reflected some volatility in the food and drink sector. Reassuringly, manufacturers expect a swift turnaround in activity," Rain Newton-Smith, director of economics at CBI, said.
