Demand is weak
MANUFACTURERS experienced another challenging month as overseas demand for UK-made goods weakened again, according to the Confederation of British Industry’s latest monthly survey.
Of the 566 manufacturers taking part in the June Industrial Trends survey, 6% said export order books were above normal, while 58% described them as below normal.
The resulting balance of -52% is the lowest since October 1998 (-55%), reversing the slight improvement that had been seen since March.
However, there has been a modest improvement in total order book levels, suggesting that domestic conditions are no longer quite as weak. The pace of decline in output has also slowed.
Ian McCafferty, the CBI’s 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.”
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