The latest Confederation of British Industry (CBI) SME Trends survey, based on responses from 218 SME manufacturing companies, found that production almost ground to a halt in the three months to July and is expected to do so in the next three months will decline slightly.
UK manufacturing small and medium sized enterprises (SMEs) expect production and orders to fall over the next three months. In addition, cost and price growth is expected to moderate, albeit to remain relatively strong. In the three months to July 2022, optimism waned again and investment intentions for the coming year generally deteriorated.
Total order intake stagnated in the three months to July. In the next three months, the companies expect total new orders to fall by 18 percent.
Average unit cost growth and average domestic price growth eased slightly in the three months to July, but both remained strong. Growth in both costs and prices is likely to moderate further in the coming three months, CBI said in a press release.
“The bleak outlook for mid-market manufacturers continues to stifle optimism. Production and order intake are expected to decline over the next three months. Despite moderating slightly, cost growth remains acute and appetite for investment is waning,” said CBI Chief Economist Alpesh Paleja.
Fiber2Fashion Newsdesk (DS)