CBI reports solid outlook for UK’s manufacturers

Around a third (32%) of firms said the volume of output over the last three months was up and 19% said it was down, giving a balance of +13%. This was above the historical average (+2%). Businesses said they expected output to grow in the coming quarter, with 31% predicting growth, and 15% a decline, giving a balance of +16%. The survey of 485 manufacturers found that a quarter of firms reported total order books were above normal, and 19% said they were below normal, giving a rounded balance of +5%. This was well above the long-run average (-16%). Rain Newton-Smith (pictured), CBI director of economics, said: "The manufacturing sector is ending 2014 on a more upbeat note, having lost a little momentum earlier in the year. "Export orders have improved, and output is expected to continue growing as we head into the New Year." She added: "However, the otherwise solid outlook for UK manufacturers is tempered by a challenging global backdrop. With Eurozone growth disappointing and some emerging markets facing a tough time, firms need to look harder for opportunities to ramp up exports to high-growth sectors across the globe."