Forecast for UK’s manufacturing is the lowest in three years

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Forecast for UK’s manufacturing is the lowest in three years

October 24, 2018 - 10:46
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Forecast for UK’s manufacturing is the lowest in three years amid growing concern about skilled labor deficit ahead of country’s exit from European Union, Bloomberg reports.

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Forecast for UK’s manufacturing is the lowest in three years amid growing concern about skilled labor deficit ahead of country’s exit from European Union, Bloomberg reports.

It is expected that production volumes will be unchanged in third quarter, and this is the worst forecast since 2015. Optimism of companies falls with the highest pace since referendum on Brexit. At the same time, expectations of workforce deficit are the highest in four decades.

Recent survey of Confederation of British Industry showed that the companies are highly concerned about absence of clarity in regards to future conditions for operation. As a result, producers reduce investments, and capital spending plans are cut with the fastest pace since July 2009. Some companies are ready to move factories out of the UK.

Brexit makes the current situation even more complicated for UK’s producers. Outside factors, including US Fed interest rates hikes as well as trade war between the US and China also put pressure.