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LONDON (Reuters) – UK manufacturers expect production to drop sharply in the next three months and there were widespread concerns over COVID and Brexit issues hampering the supply of components and materials, a showed a survey on Thursday.
The Confederation of British Industry’s quarterly measure of expected new orders fell to -17 from a reading of zero in the previous survey in October.
New orders in the three months ending in January also fell to -12 from +3.
Storage ramped up ahead of Britain’s departure from the EU’s single market on December 31
Almost half of the manufacturers surveyed – the highest share since January 1975 – feared that access to materials or components would limit their production in the coming quarter.
“This appears to be linked to a widespread COVID-related supply disruption, such as delays in overseas shipments, a shortage of containers around the world, and indirect repercussions of production disruptions in 2020,” said declared the CBI.
“Border challenges and customs delays stemming from Brexit also appear to play a role.”
A monthly version of the survey showed manufacturers in January expected their production volumes to decline the most since June of last year, when Britain emerged from its first coronavirus lockdown.
Reporting by William Schomberg, editing by Andy Bruce; Edited by David Milliken
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