Hard times

A return to weak export orders for UK manufacturers has combined with continued low domestic demand to make manufacturers’ outlook gloomy for a second month running, according to the CBI’s monthly Industrial Trends Survey.

The weakened export order books in December will come as a set back for manufacturers, who saw a marked improvement in exports in November. Total order books improved slightly on the previous two months although overall demand remained well below normal.

In the survey, a total of 37 per cent of firms reported lower than normal total orders and 15 per cent said they were above normal. This balance of minus 22 per cent is the same figure as in May and continues a trend of gently improving demand since a balance of minus 29 in August.

Export orders were reported as below normal by 36 per cent of firms, while 13 per cent said they were above normal – a balance of minus 23 per cent. This marks a return to the sorts of levels seen in September and October, which saw export order balances of minus 25 and minus 28 per cent respectively.