Optimism among smaller British manufacturers tumbled in July - CBI

Optimism among smaller British manufacturers tumbled to a three-year low in July, hit by a slowing global economy and the Brexit crisis at home, although consumers remain relatively upbeat, surveys on Wednesday showed.

The Confederation of British Industry's (CBI) gauge of optimism among small- and medium-sized (SME) manufacturers fell to -28 from -12 in April, its lowest level since July 2016, just after Britain voted to leave the European Union.

A separate indicator of consumer confidence from market research company GfK rose in July to -11 from -13 in June, beating forecasts of economists but broadly in line with its range this year.

Overall, the two figures chimed with other data that show deep pessimism in British businesses about the outlook but resilience among consumers.

"With orders falling and output and headcount stalling, the new Prime Minister must restore confidence and set out a pro-enterprise path that supports SME manufacturers. Securing a Brexit deal ahead of the October deadline remains a top priority for smaller manufacturers." CBI economist Alpesh Paleja said.