Weak domestic demand

A renewed increase in export orders has failed to ease concerns for manufacturers in the face of deteriorating consumer demand at home, according to the CBI's monthly Industrial Trends Survey, released yesterday.

Export order books improved following a lull in September and October to reach the best level this year. But total order books remained unchanged since last month, reflecting weak domestic demand.

The survey shows 42 per cent of firms reporting total order books below normal, while 17 per cent say they are above normal - a balance of minus 25 per cent. This is the same balance as October and has remained largely unchanged since the spring.

Export orders were reported as below normal by 34 per cent of firms, while 21 per cent say they are above normal - a balance of minus 13 per cent. This is a significant improvement on the balance of minus 28 per cent in the last survey, and represents a better position than the balances of around minus 17 per cent seen in the spring and summer.