GN/SV
The oil price slump has ensured that the
The headline figure in the report is this: the UK manufacturing sector will fall by 0.1% this year, and growth will be around 0.8% in 2016.
According to the EEF, Q4 of 2015 represents the third consecutive quarter when the balance between output and orders has fallen. Both figures are now at their lowest since 2009.
The declines in both manufacturing output and orders are being compounded by slowing economic growth in emerging markets, particularly China. Export orders are now at their lowest levels for more than five years, the EEF's report says. Oil's massive price drop in last couple of years has also been a major driver of the slump in manufacturing here in the UK, the EEF says.
Looking at data provided by the EEF, it's easy to see just how much the manufacturing sector has been struggling in the past couple of years:
EEF
The balance of output and orders will slump to its lowest since 2009 this quarter, the EEF says.
What is probably most worrying is that the EEF has been forced to cut forecasts for growth this quarter, something it has already done this year. The 0.8% growth expected in the sector next year is about half what was forecast by the EEF three months ago.
EEF
Output in the UK manufacturing will contract by 0.1% this year, according to the EEF. The association has also revised down its forecasts for next year.
As always, what is bad for manufacturers is bad for the British economy in general, as the sector makes up around 10% of the whole economy.
Along with EEF's generally gloomy forecast for UK manufacturers, another survey from Lloyd's Bank released on Monday shows that the UK's car industry is also struggling. Car makers in the UK have just revised down their forecasts for growth over the next couple of years from 18% to 14%, according to Lloyds. The report also cites China's slowdown as the main driver for slowing growth in the UK's car industry.