A reasonable outloook

Overseas demand for UK manufactured goods eased in December from November’s high level, but total order book levels were little changed, according to the CBI’s latest industrial trends survey.

A balance of five per cent of manufacturers reported export orders to be ‘below normal' - a weakening from November's 11-year high, when a balance of three per cent reported orders to be 'above normal'.

The weakening was focussed in the capital goods sector. However, total order book levels remain well above their long-term average at a balance of minus five per cent, a slight improvement on November and a return to the levels of the early autumn - suggesting some revival in domestic demand for manufactured goods over the last month.

An improvement in the consumer goods sector offset a weakening in capital goods. The level of stocks relative to expected demand has risen, with a balance of +11 per cent saying they were more than adequate.