LONDON, Dec 18 Reuters British manufacturers reported the biggest fall in output since the COVID19 pandemic in late 2024 and they are even more downbeat about the start of next year, according to a survey that adds to signs of a loss of momentum in the economy.

The Confederation of British Industry said a gauge of output over the three months to December in its monthly industrial trends survey published on Wednesday fell to 25, its lowest since August 2020, down from 12 in the three months to November.

Manufacturers39; expectations for output over the coming three months dropped to 31, the weakest since May 2020, from 9.

Other surveys have shown a loss of confidence among British employers after finance minister Rachel Reeves announced an increase in social security contributions that firms must pay on in her first budget on Oct. 30.

Official data has shown Britain39;s economic output contracted in September and October in the runup to the budget.

Manufacturers are facing a perfect storm of weakening external demand on the one hand, amid political instability in some key European markets and uncertainty over US trade policy, CBI lead economist Ben Jones said.

And on the other hand, domestic business confidence has collapsed in the wake of the Budget, which has increased costs and led to widespread reports of project cancellations and falling orders, he said.

The CBI39;s measure of order books tumbled to 40 in December from 19 in November, the lowest since…