Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Manufacturing fall is fastest since pandemic, CBI survey shows

by December 20, 2022
December 20, 2022
Manufacturing fall is fastest since pandemic, CBI survey shows

Manufacturing output is falling at its fastest pace since the start of the pandemic, a new survey of businesses has found.

The fall was mainly driven by a decline in production of food, drink, tobacco, paper and the mechanical engineering sectors, according to the poll of 220 manufacturers by the CBI covering the three months to December.

Order books are not as full as usual and stocks of finished goods are insufficient, business leaders said, as they warned that the prices of their goods and services will rise again in the next three months.

However the pace of price rises will slow from record highs earlier this year. Inflation fell from 11.1 per cent in October, a 41-year high, to 10.7 per cent in November as price growth in petrol and diesel slowed.

Output volumes in the manufacturing sector fell to a balance of minus 9 per cent on the sentiment survey, down from 18 per cent in the three months to November, according to the CBI, which represents businesses.

Survey responses are weighted based on a company’s market share and the extent to which they said a metric had risen or fallen to produce an index level between -100 and 100, where 0 separates contraction from growth.

The volume of goods and services produced fell in 11 out of 17 sectors, adding to evidence that the UK is entering a recession this winter.

Inflation in selling prices is expected to rise in the next three months, with a reading of 52 per cent on the index, up from 47 per cent in the three months to November.

Separate research by S&P Global/CIPS shows that factories produced less, exported less, employed fewer people and saw intakes of new work shrink last month.

The overall purchasing managers’ index improved slightly to 46.5 from October’s two-and-a-half-year low of 46.2. A reading below 50 constitutes a reduction in activity.

Anna Leach, deputy chief economist at the CBI, said: “The corrosive effect of higher inflation on demand is increasingly clear, as manufacturing output contracted at the fastest pace in two years over the last quarter. While some global price pressures have eased in recent months, cost and price inflation will likely remain very high in the near term, with rising energy bills a key concern for manufacturers.”

Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, said: “The outlook for the next year remains grim. Demand for industrial goods likely will be hit again in 2023, as real incomes are squeezed by the watering down of government support for energy bills and higher unemployment, as businesses are forced to consolidate costs.”

Read more:
Manufacturing fall is fastest since pandemic, CBI survey shows

0
FacebookTwitterGoogle +Pinterest
previous post
King Charles III bank note designs revealed by Bank of England
next post
Jeremy Hunt extends alcohol duty freeze until August

You may also like

How to Keep VIPs Safe: A Comprehensive Guide

July 11, 2023

Amazon cuts 18,000 jobs to lower costs

January 5, 2023

Getting to Know You: Dinah Jean-Philippe, Nonprofit Founder

December 21, 2022

‘Tourist Tax’ Set to Stay: Spring Budget Unlikely...

February 26, 2024

HMRC customer service deteriorates to “all time low”

February 28, 2024

Jeremy Hunt expected to increase number of Britons...

November 10, 2022

Elevate Your Style with Tartan Skirts – Upgrade...

January 31, 2023

Liz Truss sacks Kwasi Kwarteng in bid to...

October 14, 2022

Citigroup bucks ‘return to office’ trend by committing...

February 5, 2025

Secrets of Success within the personalised gifting sector:...

July 17, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Maybe Most People Do Not Want Teacher-Led Public School Prayer—But They Do Want Chaplains

      June 27, 2025
    • Flashback: The debate night against Trump that threw Biden’s reelection campaign into a free fall

      June 27, 2025
    • How to Improve your Trading Odds and Increase Opportunities

      June 27, 2025
    • UK Export Finance unveils new tools to boost SME global trade

      June 27, 2025
    • Republicans raise alarm over US vulnerability to mass drone strikes after Israel-Iran conflict

      June 27, 2025
    • Manchester businessman cleared of hacking charges in ICO case

      June 27, 2025

    Categories

    • Business (8,329)
    • Investing (2,075)
    • Politics (15,826)
    • Stocks (3,173)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved