Latest data released by CBI - 21 January 2021
- Prior -25
- Trends selling prices 4
- Prior 0
The drop in the headline reading suggests that UK manufacturers are expecting a sharp fall in output amid concerns on the virus situation as well as Brexit-related issues that may negatively impact supply of components and materials moving forward.
The expected new orders component fell to -17 compared to the previous reading of 0 back in October, with business optimism slumping to -22 from 0 previously as well.
CBI notes that:
"This appears to be linked to widespread COVID-related supply disruption, such as delays in shipments from abroad, and knock-on impacts from disruptions to production over 2020. Border challenges and customs-related delays arising from Brexit also appear to be playing a role."
The CBI readings are a survey on manufacturers to rate the level of volume for orders expected during the next 3 months.
