UK SME manufacturers expect output to fall over 3 months: CBI survey

The latest Confederation of British Industry (CBI) SME Trends survey, based on the responses of 218 SME manufacturing firms, found that output slowed to a near-halt in the three months to July and is expected to fall slightly in the next three months.

Total new orders stagnated in the three months to July. In the next three months, firms expect total new orders to decline by 18 per cent.

Growth in average unit costs and average domestic prices eased slightly in the three months to July, but both remained strong. Growth in both costs and prices is expected to ease further in the three months ahead, CBI said in a release.

“The sombre outlook for SME manufacturers continues to stifle optimism. Output and new orders are expected to decline over the next three months. Despite easing slightly, cost growth remains acute and investment appetite is petering out,” CBI lead economist Alpesh Paleja said.

Fibre2Fashion News Desk (DS)