21% of respondents reported an increase in orders compared to the previous quarter, compared to 25% who said they had fallen, according to the poll of 472 manufacturing decision-makers.
Despite this, manufacturers still appear willing to invest, according to the report. Investment intentions showed positive movement in: buildings (+6%); plant and machinery (+17%) and product and process innovation (+18%). However, there was a sharp fall in the figures for training and retraining (-19%).
Despite the slump, one area in which manufacturers appear to be optimistic is exporting. 30% predict it will increase in the next quarter, compared to just 10% who see it going down. This positive balance of 20% is the highest since April 2014.
Rain Newton-Smith, director of economics, CBI, said that manufacturing was struggling to recover from a “flat start to the year” and that falling orders are giving “little impetus for production”.
But he added that the positive outlook in the exporting market offered a ray of hope and that manufacturers should be supported in their exporting operations.
“We need to continue to help manufacturers to export their products to markets across the globe. While businesses should take the lead, government also has a role to play through the advice provided by UKTI and our embassies,” he continued.
