A weaker outlook for the global economy is hitting UK exports and slowing the recovery in Britain’s manufacturing sector, the CBI has warned.
A sluggish eurozone economy and slowing growth in China weighed on UK export order books in November as foreign demand for UK goods wanes, the lobby group said.
Of the firms surveyed, 17% said their export order books were above normal levels, while 34% said they were below. That gave a balance of -17%, an improvement on October’s -23% but continuing the run of negative results. Fifteen of the 18 manufacturing sub-sectors reported below-average export orders, with the largest drag coming from mechanical engineering, where export orders were at a two-year low.
The CBI said sluggish export demand meant recovery in the UK manufacturing sector had slowed since the beginning of the year.
“Overall manufacturing output remains quite strong, although growth is expected to ease against the backdrop of continuing global risks,” said Rain Newton-Smith, the CBI’s director for economics.
“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.”
Total order books were in better shape, reflecting domestic demand for British goods, with the balance rising to +3% in November from -6% in October.
via The Guardian