British car production declined in October as rising uncertainty about global growth outlook weakened demand, the Society of Motor Manufacturers and Traders (SMMT) reportedly said Thursday. The 0.3% decline in the first 10 months is an early sign that UK car production is being hit by rising global economic uncertainty. Global economic uncertainty is weighing on demand for British made cars.
British car manufacturing has fallen over the first 10 months of the year as the first signs emerge that UK car production is being hit by rising global economic uncertainty. The number of cars rolling off UK production lines was down 0.3% compared with the same period in 2013, at 1.28m vehicles according to the figures from the Society of Motor Manufacturers and Traders (SMMT).
The decline is due to a fall in demand overseas, with the number of cars built in British factories but destined for export down 1.4% at a just over 1m. Recently, David Cameron said on Monday that “red warning lights are flashing on the dashboard of the global economy” presented a real risk to the UK economy.
The SMMT admitted global economic uncertainty was weighing on demand for British made cars, but argued recent investment in UK production would support the industry. “The UK’s car manufacturing industry is still in a strong position in spite of the growing uncertainty surrounding the global economy,” said Mike Hawes, SMMT chief executive. “Billions of pounds have been invested into UK facilities in the past two years, with several new models starting production this year and more in the pipeline.”
The last year UK car manufacturing fell was 2009, at the height of the financial crisis.
