Friday, July 10, 2020

New low for manufacturing activity in June

Manufacturer output volumes in the three months to June fell at the fastest rate on CBI survey record (since July 1975), having slightly surpassed the recent record set in May 2020. That’s according to the latest CBI monthly Industrial Trends Survey.

The survey of 360 manufacturers found that output volumes declined in 15 of 17 sub-sectors, with the headline drops in output primarily driven by the motor vehicles & transport equipment, mechanical engineering, and metal products.

Total order books remained poor by historical standards, despite improving slightly on last month. Meanwhile, export orders books worsened on the previous month, falling to their lowest on survey record (since April 1977).

Looking ahead, manufacturers expect the pace of decline in output volumes to slow in the next quarter. Firms anticipate that output prices in the next three months will fall at a slower pace.

Anna Leach, CBI Deputy Chief Economist, said: “The UK manufacturing sector remained in a deep downturn in June due to the ongoing COVID-19 crisis.

“Output volumes declined at a new record pace and export order books fell to an all-time low, reflecting the significant fall in demand in the UK and abroad. Firms are again hoping that this will ease somewhat in the next three months.

“The Government has already undertaken a huge amount of work to provide financial lifelines to businesses throughout this unprecedented period. With firms having been encouraged to restart operations, the Government must continue to engage with the sector to understand their specific concerns and provide support as needed.”

Tom Crotty, Group Director, INEOS and Chair of the CBI Manufacturing Council, said: “The COVID-19 crisis has been hugely challenging for the manufacturing sector, and these figures reflect the tough circumstances faced by firms across the country.

“Government support measures have been a relief to the sector and have undoubtedly saved jobs during this crisis. As well as continuing to support the sector during the current pandemic, it is critical that the government works with firms to develop a long-term plan to grow a resilient UK manufacturing sector focussed on skills, productivity, and sustainability.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

Regeneration proposals to be developed for Goole

East Riding of Yorkshire Council's Cabinet has confirmed support for developing a Town Deal for Goole. Councillors have agreed to press ahead with preparation of...

University Centre completes in Grantham

Work to create a University Centre to deliver higher education and skills training in Grantham is now complete. Degrees, high-level apprenticeships, diplomas and short courses...

IPF ‘very encouraged’ by firm’s improving performance

International Personal Finance (IPF), a Leeds-based consumer credit firm, has reported an uptick in collections in the wake of the coronavirus crisis. Collections reached 88%...

Sheffield’s Heart of the City II moves forward

Sheffield’s ongoing Heart of the City II scheme is moving forward as the city council pledges “exemplary ethical and sustainability standards” whilst also opening...

350 jobs on the line at Arup

Arup, which has offices in Leeds, Sheffield and York, is set to cut 350 jobs. The engineering and design consultancy's redundancies come as a result...

Leeds RICS office to close

The Royal Institute of Chartered Surveyors (RICS) is closing its Leeds office according to reports in Property Week. Other offices set to shut are in...

Related news

Regeneration proposals to be developed for Goole

East Riding of Yorkshire Council's Cabinet has confirmed support for developing a Town Deal for Goole. Councillors have agreed to press ahead with preparation of...

University Centre completes in Grantham

Work to create a University Centre to deliver higher education and skills training in Grantham is now complete. Degrees, high-level apprenticeships, diplomas and short courses...

IPF ‘very encouraged’ by firm’s improving performance

International Personal Finance (IPF), a Leeds-based consumer credit firm, has reported an uptick in collections in the wake of the coronavirus crisis. Collections reached 88%...

Sheffield’s Heart of the City II moves forward

Sheffield’s ongoing Heart of the City II scheme is moving forward as the city council pledges “exemplary ethical and sustainability standards” whilst also opening...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close