Factories in UK report biggest output fall in over four decades

Factories in UK the highest and unbearable fall in output in more than four decades from March till May as the country witnessed partial lockdown due to Coronavirus outbreak.

According to the details, balance for output over a three-month period dropped to -54 in May from -21 in April.

A gauge of industrial orders sank to its lowest since October 1981 at -62 in May from -56 last month, a somewhat bigger decline than economists had predicted.

“UK manufacturers are still grappling with the impact of the pandemic. Production levels have fallen even more sharply as firms experience collapsing demand and supply chain disruption, leading some to temporarily shut down their factories,” CBI economist said.

Around three quarters of manufacturers reported cashflow problems and they are not much more positive about the outlook, with the output expectations balance for the next three months rising to -49 from -67 in April.

Earlier on Thursday a separate survey of purchasing managers in the manufacturing sector also painted a gloomy picture for May.