CBI Survey Says UK Exports Hit by Global Economy

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

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza