(Bloomberg) -- U.K. manufacturers expect output to flat-line in the next three months in a hangover from the delay to Brexit.
Factories stockpiled goods and ramped up production ahead of the original March 29 deadline to leave the European Union, but the latest survey from the Confederation of British Industry suggests that a slowdown is under way.
With Brexit now postponed, 35% of manufacturers say their stocks of finished goods are more than adequate, the highest figure for a decade. Demand is deteriorating, meanwhile, with more firms reporting below-normal order books than at any time since the aftermath of the 2016 referendum.
The findings add to evidence that the economy lost momentum this quarter as firms scaled back orders and met demand from unsold goods. Economists expect growth of around 0.2%, less than half the pace of the previous three months.
The CBI survey, which was carried out between April 25 and May 13, showed weakness in both domestic and export orders, while inflationary pressures were subdued.
To contact the reporter on this story: Andrew Atkinson in London at a.atkinson@bloomberg.net
To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Brian Swint, David Goodman
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