22 November 2016 Business Voice article
Ideas for building Britain’s prosperity from space science and robotics and connected cities were abuzz at this 2016’s CBI Annual Conference
23 August 2016
Press release
Manufacturing output grew while total orders remained solid, according to the latest CBI monthly Industrial Trends Survey.
The survey of 505 firms found that export order books reached a two-year high, suggesting that the depreciation of sterling since the end of last year may be feeding through to stronger overseas demand. Chemical manufacturers accounted for just over half the improvement in export orders, with less than one-third of the 17 manufacturing sub-sectors reporting export orders at below normal levels.
Despite the improvement in exports, total order books were largely unchanged but remained comfortably above the long–run average. Output growth remained at a healthy pace, although a little weaker than in the three months to July.
Price expectations for the three months to November rose to their highest since February 2015, perhaps in response to the rise in the cost of imported raw materials following sterling’s depreciation.
Anna Leach, CBI Head of Economic Analysis and Surveys, said:
“It’s good to see manufacturing output growth coming in stronger than expected, and some signs that the fall in sterling is helping to bolster export orders. But the pound’s weakness is a double-edged sword, as it benefits exporters but also pushes up costs and prices.
“Manufacturers will welcome the new government’s focus on industrial strategy as well as the Chancellor’s recent guarantee over EU funding, which will help to provide certainty for universities and businesses investing in innovation and research and development.
“The most significant effects of the vote to leave the EU will flow over the medium to long-term. Therefore firms need to see ambitious decisions in the Autumn Statement that will secure the UK’s economic future as changes to trade, regulation and access to skills loom on the horizon.”
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