UK car manufacturing declines to 10-year low amid Brexit woe
The number of cars manufactured in the UK has fallen by 20% in November with Brexit uncertainty a major contributing factor, according to recent industry body figures.
British car manufacturers have witnessed have seen output fall to a 10-year low in November, with the number of cars being built down by around 20% signalling that the industry has started to contract ahead of the UK’s withdrawal from the EU.
In fact, car makers in the UK have built just 129,030 vehicles in November, representing a 19.6% fall – the largest drop in production the sector has seen since November 2008, according to figures published by the Society of Motor Manufacturers and Traders (SMMT)
British car exports down
The industry body noted that while domestic car production had fallen by 1.9% to 23,809 vehicles, exports had plummeted by a 22.8% to 105,221.
The SMMT blamed decline in production on low consumer and business confidence in the UK driven by Brexit uncertainty, while international demand for British exports fell in Europe and Asia amid a global economic cooldown.
‘It’s very concerning to see demand for UK-built cars decline in November, with output seriously impacted by falling business and consumer confidence in the UK allied to weakening export markets,’ SMMT CEO Mike Hawes said.
Brexit woes weigh heavy on British car makers
The UK car manufacturing industry is struggling in the face of Brexit uncertainty, with the sector heavily reliant on frictionless trade with Europe.
‘With fewer than 100 days until the UK leaves the European Union, the automotive industry needs certainty and a ‘no-deal’ Brexit must be ruled out,’ Hawes added. ‘Thousands of jobs in British car factories and supply chains depend on free and frictionless trade with the EU.’
‘If the country falls off a cliff edge next March the consequences would be devastating.’
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See your opportunity?
Seize it now. Trade over 17,000+ markets on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
