Manufacturing in the United Kingdom is experiencing a difficult end to the year amid “gathering gloom” from the global economy, according to industry body the EEF.
Manufacturing forecasts have been subsequently cut, expecting a 0.1{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} drop in the current calender year, and with 0.8{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} growth expected during 2016.
Their survey also points to major concerns regarding the global economy.
In addition, a report from Lloyds states that car manufacturers have also reduced their growth forecasts.
The EEF says that weakening demand from developed and emerging markets have become more prominent, leading to falling exports.
Steel job losses
As well as exports, the EEF says job prospects have been hit, particularly with more spare capacity in the oil industry, which has been hit by falling prices.
Meanwhile, recent job losses in steel companies have also hit the sector.
The EEF report follows last week’s Markit Purchasing Managers’ Index (PMI), which showed UK manufacturing slowing in October.
Manufacturing accounts for about 10{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} of the output of the UK economy.
The production industries: mining, quarrying, gas, electricity, water and sewage account for another 5{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34}, and construction makes up 6{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34}.
Source: BBC Business
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