UK small manufacturers gloomiest since Brexit referendum - CBI

LONDON (Reuters) - Small British manufacturing firms are their most pessimistic since just after the Brexit referendum in 2016 as they face political uncertainty at home and trade wars abroad, according to a survey published on Wednesday. The Confederation of British Industry's gauge of optimism for small and medium-sized manufacturers fell to -32 in the three months to the end of October, down from -28 in the three months to July. Companies reported weak new orders - especially from clients in Britain - and little enthusiasm to raise investment spending.

Reuters November 06, 2019 06:06:30 IST
UK small manufacturers gloomiest since Brexit referendum - CBI

UK small manufacturers gloomiest since Brexit referendum  CBI

LONDON (Reuters) - Small British manufacturing firms are their most pessimistic since just after the Brexit referendum in 2016 as they face political uncertainty at home and trade wars abroad, according to a survey published on Wednesday.

The Confederation of British Industry's gauge of optimism for small and medium-sized manufacturers fell to -32 in the three months to the end of October, down from -28 in the three months to July.

Companies reported weak new orders - especially from clients in Britain - and little enthusiasm to raise investment spending.

"Firms are caught between the perfect storm of perennial Brexit uncertainty at home, and sluggish growth in the global economy," Alpesh Paleja, the CBI's lead economist, said.

"As well as hitting output, orders and hiring, these issues are depressing investment plans across the board."

Whichever political party wins Britain's Dec. 12 national election ensure the country leaves the European Union with a transition deal and then push ahead with negotiations for a new, long-term trade relationship with the bloc, he said.

Britain's economy shrank in the second quarter of 2019 but is widely expected to have shown some growth in the July-September period, thus avoiding a recession.

As well as Brexit, British manufacturers are facing up to a slowdown in the global economy caused by trade tensions between the United States and China.

The CBI's survey showed almost two-thirds of the 240 companies which took part cited political or economic conditions abroad as likely to limit export orders, a survey record high.

(Reporting by Andy Bruce; Editing by William Schomberg)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Turkey's daily COVID-19 deaths hit a record high of 141 - ministry
World

Turkey's daily COVID-19 deaths hit a record high of 141 - ministry

ANKARA (Reuters) - Turkey's daily death toll from the coronavirus hit a record high of 141 on Friday, according to data from the Health Ministry, as the country braced for nationwide measures amid a surge in cases in recent weeks. The data showed 5,103 new COVID-19 patients were recorded in the country, while the overall death toll rose to 12,084. Since July, Ankara has only reported symptomatic COVID-19 patients, a move critics say hides the true scale of the outbreak.

Gunman releases all hostages in Georgian capital Tbilisi - police
World

Gunman releases all hostages in Georgian capital Tbilisi - police

TBILISI (Reuters) - A gunman has released unharmed all nine hostages he had taken at a microfinance organisation in the Georgian capital Tbilisi on Friday, police said. According to preliminary information, the gunman was not demanding a ransom but had some social demands, including lower prices for medicines

With applause and flowers, thousands attend funeral of Belarusian protester
World

With applause and flowers, thousands attend funeral of Belarusian protester

By Matthias Williams KYIV (Reuters) - Thousands of people silently raised their arms in the air, held flowers aloft and broke into chants outside a church in Minsk on Friday at the funeral of a Belarusian protester. The death of 31-year-old Roman Bondarenko has become a flashpoint in months-long mass protests against President Alexander Lukashenko. Witnesses said Bondarenko was detained after a scuffle with people in plain clothes who came to a playground to remove red-and-white ribbons representing the protest movement