British manufacturing output growth stalled in September and expectations for output growth over the coming three months were the weakest since October 2013, a report from the Confederation of British Industry showed Tuesday.
A balance of -7 percent reported fall in order books in September compared to a -1 percent posted in August, the latest Industrial Trends Survey revealed. It was forecast to improve to zero percent.
In three months to September, 26 percent of firms reported increase in output, while 25 percent said it decreased, giving a rounded balance of 0 percent.
Manufacturing output is expected to grow a little next quarter, with balance reaching 9 percent.
Firms expect average prices to edge down further in the next quarter, to the greatest extent since August 2009. A balance of -8 percent said average prices will fall in coming three months.
Rain Newton-Smith, CBI Director of Economics, said, “Exports are the missing link in the UK recovery at the moment, with the strong pound squeezing manufacturers’ margins, even though lower commodity prices are helping to ease cost pressures.”
“Meanwhile manufacturers will have an eye on China’s slowdown and its effect on neighbouring markets.”
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