British manufacturers have ramped up their stockpiling efforts ahead of the new Brexit deadline at the end of the month.

Growing concerns over the disruption to the UK economy have sparked this hoarding and, according to IHS Markit and the Chartered Institute of Procurement and Supply, UK factory output was boosted in September by firms rushing to purchase goods and materials to avoid any potential border delays.

However, factory output has fallen for a fifth month in a row, despite this stockpiling activity which could represent the largest downturn since the recession in 2009.

The IHS Markit/Cips manufacturing purchase index benefitted from the urgency to build up supplies with an increase to 48.3 in September from a six and a half year low of 47.4 in August. Unfortunately, it is still below the 50.0 mark that separates growth from contraction.

Rob Dobson, director at IHS Markit, said:

The impact of such Brexit-related stock building was dwarfed by weakening demand for other customers, due in part to clients routing supply chains away from the UK. 

Manufacturing output, in general, has decreased recently, largely influenced by the continuing US-China trade war. The main effect of this has caused a lack of business investment and depressed export demand. Countries such as Italy and Germany have been massively affected, with their economy being torn apart to the edge of recession. 

In a sign of the continuing downturn in UK manufacturing, firms said that output, new orders, and export business all fell in September. Employment levels also fell at the fastest pace in six years, with around 8,000 jobs lost in September, up from around 6,000 in August. 

Against a backdrop of mounting political turmoil in recent months, UK firms have begun redoubling their efforts to prepare for a potentially damaging no-deal Brexit at the end of October. 

Greggs announced on Tuesday that it will be taking action to ensure that the main ingredients of their well-known products are still readily available to them after Brexit. They have taken such steps as renting new warehouse space and buying more of products that can be stored for longer such as bacon and tuna. They have also looked to the UK to provide their cheese and sugar, staple ingredients in any Greggs meal. 

However, not everything can be so easily sourced for them, Greggs Chief Executive, Roger Whiteside, has stated that the company would not be able to source their more delicate ingredients such as vegetables and would either have to find an alternative or stop producing products that used these items. 

Christmas has been a concern for many businesses with plenty of stockpiling of beer, wine and spirits ahead of the season to meet demand. 

Firms across the UK had rushed to stockpile before the original Brexit deadline on 29th March, providing a boost to economic growth earlier this year. Companies then opted to run down supplies after Theresa May delayed the deadline until the end of October, dragging down economic output, taking Britain to the brink of recession.