The United Kingdoms manufacturing sector enjoys robust output and orders growth amid weakened national currency and strong external demand, however current economic successes are at risk over Brexit uncertainty and the possibility of a no-deal scenario, the Confederation of British Industry (CBI) said on Tuesday.
MOSCOW (Pakistan Point News / Sputnik - 21st August, 2018) The United Kingdoms manufacturing sector enjoys robust output and orders growth amid weakened national Currency and strong external demand, however current economic successes are at risk over Brexit uncertainty and the possibility of a no-deal scenario, the Confederation of British Industry (CBI) said on Tuesday.
The CBIs findings, based on the survey of 379 manufacturers, show a modest slowdown in the manufacturing and orders growth over the past months, which however remains "well above the long-term average."
"Manufacturing growth remains strong, supported by the lower level of sterling and strong global economy. But risks to that growth remain high in light of international trade tensions and the uncertainty caused by Brexit. Firms will be keen to see urgent progress on the Withdrawal Agreement to lock in transition, which is crucial to continuing frictionless trade as the UK leaves the EU," Anna Leach, the CBI head of Economic Intelligence, said, as quoted in a statement.
Leach warned that no-deal Brexit would be "immensely damaging" both for UK industry and the rest of the European Union. She therefore called on the parties to the Brexit talks to display flexibility and "compromise to protect trade flows" amid the protectionism rise across the world.
The CBI also expressed concerns over "steady" output price inflation and projected that the output growth would remain to be curbed by "weak household income growth" and subdued investment amid Brexit uncertainty.
The Brexit talks between London and Brussels have been ongoing since June 2017. The parties are expected to come up with the final agreement in fall. Officials from both the European Union and the United Kingdom have, however, been voicing concerns over the possibility of no-deal Brexit, citing the lack of progress in the talks.
