Combating the rivalry between UK and the European Union, the manufacturers in the United Kingdom are facing a shortage of low-wage workers and supplies. 10 percent of the British economy is supported by the manufacturing industry. The situation has been like this for the past 50 years but has gotten even worse now according to a survey by the Confederation of British Industry (CBI).
“Manufacturers across the board are continuing to battle major headwinds,” CBI chief economist Rain Newton-Smith said. A monthly index of new orders for January dropped to minus 38 from minus 25 in December, and a quarterly measure of optimism sank to minus 22 from zero in October.
On the other hand, the export sector is doing good with the balance rising to its least negative since March but the trade is still not up to its optimal mark. Britain’s economy is expected to contract in early 2021 as the country is still battling the covid-19 virus. The trading condition with the EU also plays a role states the survey.
