The withdrawal from the European Union, combined with the pandemic, creates a deficit in the United Kingdom that has not been seen for half a century.
On Thursday, January 21, the Confederation of British Industry released the results of a study showing that the country is experiencing a shortage of consumables, as well as low-paid workers.
At the same time, the assessment of British manufacturers of their competitiveness in comparison with European companies has also deteriorated. This rating is falling faster than at any time in the history of observations, as the business expects a decline in production and orders.
The monthly index of new orders for January fell from -25 in December to -38, and the quarterly index of optimism from zero in October fell to -22.
The survey is another proof that the British economy is waiting for a contraction in early 2021, analysts say. This is facilitated by both the growth of bureaucracy in trade with the EU, and the coronavirus pandemic. It is worth noting that production accounts for about 10% of the country’s economy.
Observations show that many manufacturers were building up resource stocks and rushing to fulfill orders in December before the transition period was completed. Although British goods are not subject to tariffs when imported into the EU, deliveries are now accompanied by paperwork and delays at customs. This also caused concern about the shortage of materials.
The new migration rules, in turn, entail a shortage of unskilled workers.