South: Manufacturing growth remains steady, says CBI
Manufacturing growth continued in the three months to July, but exports were set to weaken, according to the latest CBI Quarterly Industrial Trends Survey.
The survey of 445 firms reported slower growth in total new orders in the quarter to July, though it remained above average. Growth in total new orders, output and numbers employed are projected to remain firm over the next quarter.
The survey comes as The Business Magazine is set to launch a Southern Manufacturing 100 - a listing of the top unquoted manufacturers in the south.
The list will appear in the September issue and will be followed by events such as roundtable debates and a private dinner.
The CBI survey showed that the volume of new export orders rose slightly, but the outlook for the next quarter was gloomier. Survey respondents continued to report sharp falls in competitiveness in the EU, likely linked to Sterling rises earlier in the year. Political and economic conditions abroad were also seen as a constraint on orders by a significant number of firms.
Investment intentions remained broadly similar to the last quarter, staying above their long-term averages, with plans for spending on building and plant and machinery improving slightly.
Katja Hall, CBI deputy director-general, said: “Manufacturers are continuing to feel the pressure from the stronger pound.
“Greater buoyancy in exports remains a missing element from the UK’s recovery. Nevertheless we’re encouraged by the Government’s commitment to take steps to address this as part of its recently announced productivity plan.
“The EU remains our largest trading partner, so while the UK economy’s direct exposure to Greece is minimal, we must encourage all leaders to act decisively to preserve growth and stability throughout the Eurozone.
“Despite sterling pressures and the challenging global backdrop, investment intentions remain above average, particularly in innovation and training.”