UK manufacturers expect their output levels over the next three months to plummet at a rate not predicted since 1980, the Confederation of British Industry (CBI) has said.
Its latest Monthly Industrial Trends survey also indicated demand for UK manufactured goods at home and abroad has fallen further below par in March, and that prices are again expected to fall over the coming quarter. Ian McCafferty, CBI chief economic adviser, said: "The past six months have proved especially tough for many UK manufacturers, who have been hit by plunging domestic and global demand. Although firms have cut output aggressively in response to the recession, stock levels are still too high relative to expected demand. Manufacturers will take further action to reduce their stocks, leading to further sharp falls in output over the coming quarter."
Asked about their expectations for output volumes over the next three months, 8% of firms said they expected them to rise, while 56% said they would fall. The resulting balance of -48% was slightly worse than last month (-44%) and equalled the survey record low of September 1980 (-48%).