20 January 2015

CBI reports manufacturing continues to grow

In the last report for 2014, the CBI reported manufacturing growing at a strong pace. The survey of 448 firms reported sustained growth in orders and output volumes. However, the rate of expansion in domestic new manufacturing orders eased a little and export orders experienced their first decline in eighteen months. Businesses anticipated continued growth for the next three months, but there was reduced expectation for total new orders and export growth. Looking at 2015, manufacturers plans for investment in buildings slipped to their weakest in a year. Plant and machinery, products and processes stayed well above average.

Rain Newton – Smith CBI Director of Economics, said "It’s disappointing that a sluggish export market has taken some of the steam out of manufacturing growth, which was going from strength to strength throughout most of last year.

However, growth in orders and output is expected to continue ahead, albeit with expectations moderating and domestic orders have continued to rise at a healthy pace. It is encouraging that job numbers are growing.

Nevertheless, the manufacturing sector is clearly facing some headwinds. Global, political instability, mounting concerns about weakness in the Eurozone and recent rises in sterling are all weighing on export demand"