According to a CBI survey, business optimism amongst SME manufacturing firms deteriorated in the three months to October, at the fastest pace since July 2016, around the time of Brexit referendum. Business sentiment dropped to -32 in the three months to October. 64% of respondents cited cited political/economic conditions abroad as likely to limit export orders – a survey record high.
Alpesh Paleja, CBI Lead Economist, said: “Activity among SME manufacturers remains listless. Firms are caught between the perfect storm of perennial Brexit uncertainty at home, and sluggish growth in the global economy. As well as hitting output, orders and hiring, these issues are depressing investment plans across the board.
“As a first step to lifting the malaise, the next government must get behind business to deliver on a Brexit deal, particularly one that unlocks a smooth transition period. Then the real heavy lifting can begin on forging a future relationship with our biggest trading partner. Ending political uncertainty will enable a renewed focus on domestic priorities, which is critical for the economy’s longer-term growth.”
