Export orders weaken for manufacturing

In the CBI's latest Industrial Trends survey, 6% of manufacturers said their export order books were above normal, while 58% reported below average exports. The balance of -52% is the lowest for over 10 years and reverses the improvement seen since March. However, while exports struggle, overall order books have improved and one in ten manufacturers reported order books above normal. There's also been a slowing of the decline in output. Ian McCafferty (pictured), CBI chief economic adviser, said: ""Export orders are no better than they were a few months ago, reflecting the continued weakness of overseas demand for UK-made goods. As such, conditions for UK manufacturers remain challenging with volumes of total orders still at very weak levels. "However, manufacturing firms do expect output to fall at a much slower pace compared to the beginning of the year, as the drastic action they have taken to reduce stocks appears to be paying off. Although the stock position somewhat improved on previous months, stock levels remain high relative to demand." Manufacturers are anticipating output to drop at a much slower pace over the coming quarter compared with earlier in the year: 17% expect the volume of output to increase over the next quarter, while 34% expect it to fall.