LONDON (Reuters) -British manufacturers reported the sharpest fall in output since August 2020 during the three months to the end of November, due to uncertainty ahead of next week's annual budget,
UK Manufacturers Face Largest Output Decline Since 2020
LONDON (Reuters) -British manufacturers reported the sharpest fall in output since August 2020 during the three months to the end of November, due to uncertainty ahead of next week's annual budget, and do not expect any improvement in the months ahead.
The Confederation of British Industry said its industrial output balance for the three months to November fell to -30 from -16 in the three months to October, while the outlook for the next three months fell to -30 from -19.
The industrial order balance edged up only marginally to -37 this month from -38 in October, which was the lowest since December 2024.
"What's striking in this month's survey is how consistently firms link the slowdown to uncertainty ahead of the Budget, with customers delaying purchases and investment until they know what's coming," CBI Lead Economist Ben Jones said.
Finance minister Rachel Reeves is widely expected to announce significant further tax rises in her second annual budget on November 26. At her first budget in October 2024, she sharply raised taxes on employers.
Overall British economic growth slowed to a weaker-than-expected 0.1% in the three months to September, according to previous official data, after a cyber attack on JLR led to a 29% fall in British motor vehicle production in September alone.
(Reporting by David Milliken, editing by Andy Bruce)
