British Manufacturing Output Declines

LONDON (Reuters) – British manufacturers reported the biggest fall in output in late 2024 since the COVID-19 pandemic, and they are even more downbeat about the start of next year, according to a survey that adds to signs of a loss of momentum in the economy.

The Confederation of British Industry (CBI) indicated that a gauge of output over the three months to December in its monthly industrial trends survey – published on Wednesday – fell to -25, its lowest since August 2020, down from -12 in the three months to November.

Expectations for output over the coming three months dropped to -31, marking the weakest level since May 2020, from +9.

Other surveys have shown a loss of confidence among British employers following finance minister Rachel Reeves’ announcement regarding an increase in social security contributions that firms must pay in her first budget on Oct. 30.

Official data has shown that Britain's economic output contracted in September and October leading up to the budget.

The CBI's measure of expectations among firms for how much they will increase the prices they charge over the next three months rose to +23 from +11 in November.

The survey was based on responses from 331 manufacturers and was conducted between Nov. 25 and Dec. 11.