UK Manufacturing Outlook Darkens: Output, Orders Hit Six-Year Low

The outlook for British manufacturing next year has darkened, with output and new orders deteriorating at rates not seen since 2009, according to an industry survey on Monday that warned of slowing growth both at home and abroad.

Manufacturing organisation EEF said its quarterly balances for new orders and output fell to their lowest levels since the third quarter of 2009, when Britain’s economy had just exited its deepest recession in over 70 years.

Britain had the fastest-growing major world economy last year and is likely to be at the head of the pack again this year. But it has relied heavily on domestically focused services for growth, frustrating hopes for a more export-led recovery.

The EEF survey, which is sponsored by law firm DLA Piper, raised scant hope of a manufacturing recovery in 2016, after the sector failed to contribute to British economic growth in the first three quarters of this year.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.