UK Manufacturing Orders Fall Dramatically in Q3 2018

UK manufacturing survey

We reported back in July 2018 that production in UK manufacturing had increased at its strongest page in a year in Q2. Q3 of 2018 is certainly showing a different picture. Manufacturing orders for UK manufacturing companies fell in Q3 at the fastest pace for 3 years over Brexit concerns. This result has been published by CBI business group after a survey carried out in the among those in the manufacturing sector.

In the survey, CBI report that 6% of the 354 surveyed companies said that orders fell during the third quarter which is the lowest rating since October 2015. While Q3 and Q4 usually have lower output and order figures than compared to Q1 and Q2, the drop is a lot heavier than expected.

The main reasons for this drop in orders is down to confidence on manufacturing ahead of Brexit. Trade barriers and staff shortages can be contributed as the main fear factors around Brexit.

In the Expert Manufacturers quarterly review of the manufacturing industry for Q2, the Brexit negotiations were on going with no resolution in sight. Q3 is now upon us and the government has still not secured a withdrawal arrangement from the European Union. As a result confidence in the future fell sharply according to the CBI report.


Brexit is having an impact on the major decision makers in the leading manufacturers. FT report that Nissan is “delaying pay negotiations with staff at its Sunderland plant until there is “clarity on the future business outlook”.”

The Telegraph have reported that capital expenditure dropped at its fastest rate since July 2009.