UK manufacturing exports fall as order books weaken: CBI
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UK manufacturers are reporting that export orders for goods manufactured in the UK have fallen at their fastest rate for almost two years as factory order books have weakened, leading to the expectation of a fall off in production over the coming months.
According to the CBI's latest monthly Industrial Trends Survey, only 18% of manufacturers reported total order books to be above normal, while 41% said that they were below. Export demand also remained depressed, with just 12% reporting export order books to be above normal and 44% reporting a fall.
Manufacturers also expect to reduce production over the next three months with one third of survey respondents expecting to cut back on production.
CBI chief economic adviser Ian McCafferty (pictured) said that conditions in the sector remained difficult with weaker export performance reflecting instability in the Euro area, the UK's biggest export market.
Chris Williamson, chief economist at Markit, said that while the data confirmed the picture of manufacturing struggling, it provided few clues as to where manufacturing is headed. Manufacturing conditions were deteriorating, he said, but at a slower rate, and recent data for the US had shown surprising resilience. Although recent surveys confirmed that manufacturing was enduring its worse period since the recession ended, there were signs that the rate of decline may have begun to moderate, "ending the year with some rays of hope to cling on to".
