Mixed performance messages from manufacturers – CBI

MANUFACTURING orders were flat in the three months to January, while output was stable for the second quarter in a row, the CBI has reported.

Both orders and output are expected to rise moderately over the next three months with the employment and investment picture continues to look relatively positive, the business lobbying organisation said.

Of the 389 manufacturers responding to the latest CBI quarterly Industrial Trends Survey, 25% reported that total new orders had risen, while 28% said they fell. The rate of decline in orders was slower than in the previous quarter (-13%).

Anna Leach, CBI head of economic analysis, said: “While domestic demand and business optimism have steadied, export demand remains a concern for manufacturers, with orders continuing to fall, albeit at a slower rate. There are encouraging signs of stability in overall demand, however, with domestic orders, export orders and production expected to rise in the quarter ahead.”

While optimism regarding the business situation was unchanged (0%), firms remained concerned about export prospects for the year ahead (-11%).

Furthermore, 56% of firms cited price competition from overseas competitors as a factor likely to limit export orders in the next three months.