Manufacturing growth firm, but exports weak says CBI

Expectations for growth in output volumes over the next three months declined to a 13-month low, although it remains above the long-run average, according to the 421 manufacturers surveyed.

The majority of sectors reported below-par export orders, with mechanical engineering the lowest for two years, though this was offset by stronger performance in the aerospace sector.

Although total orders grew to their strongest position in three months, only half of the 18 sectors surveyed reported orders being above average.

Manufacturers expect output prices to be flat over the coming three months, little changed from recent months.

Rain Newton-Smith, CBI Director for Economics, said: “Overall manufacturing output remains quite strong, although growth is expected to ease against the backdrop of continuing global risks.

“Manufacturers are particularly struggling in export markets due to a challenging global economic climate, including sluggish Eurozone growth, and also slowing emerging markets, such as China.”