Manufacturing conditions may be stabilising

Manufacturing may be stabilising
Manufacturing may be stabilising

Demand in the manufacturing sector was stable and output continued to expand at a solid pace this month.

This is according to the latest monthly Confederation of British Industry (CBI) Industrial Trends Survey, which found that total order books strengthened slightly in the three months to June led by the food and drink sector, and motor vehicles & transport.

Total export order books likewise remained unchanged, suggesting that the depreciation of Sterling has yet to have a material impact on overseas demand.

Output growth continued to be brisk, with firms raising their expectations for the next three months further.

CBI chief economist Rain Newton-Smith said: “The recent fall in the pound appears to have done little for our exporters. It may be that the growing uncertainty in the run-up to the EU referendum, combined with global risks elsewhere, has offset some of the benefits of a weaker currency at this time.”

“But while British manufacturers had a tricky start to the year, there are more positive signs as output and demand stabilise.”