Growing numbers of orders for British manufacturers expected to level out, survey finds

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9th February 2015 12:28 - Industrial

Despite the fact that the amount of new orders placed with British manufacturers has risen over the past three months, manufacturing Growing numbers of orders for British manufacturers expected to level out, survey findscompanies anticipate the amount will level out in the next few quarters.

The CBI Quarterly Industrial Trends Survey, which questioned 467 manufacturing firms, found an increase in the amount of new orders, which were led by a prevalent demand within the UK and a small growth in export orders.

In the previous quarter, manufacturing output grew at a similar pace as the last. It was identified that the cost of units fell for the first time in more than 12 years.

When looking at staffing within the manufacturing sector, the amount of employees grew at a steady rate. In the upcoming quarter, manufacturing companies do not expect a growth within new export orders. This will hinder the increase of total orders. On the other hand, orders within Britain are expected to continue to grow, albeit at a slower rate than that of previous quarters.

The survey highlighted that output is anticipated to grow but at a slow rate due to a lack of access to skilled labour. Another reason for a slow rate of growth is competitive prices within the industry.

Although output will be limited, the sentiment surrounding the general business of the industry is a lot more positive than that of the previous quarter.

CBI’s director of economics, Rain Newton-Smith said of the findings: “British manufacturers are still heading along the right path: new orders are up, bolstered by domestic demand and more people are getting work in factories across the UK.

“Exports have grown modestly, but there is a feeling that we will not see a repeat in the next quarter, especially with the Eurozone still treading water and battling deflation.

“Falling oil prices should be positive for the UK economy overall, benefitting households and lowering costs for firms, although North Sea oil producers are being hit. With overall cost pressures contained as a result, it’s no surprise to see average domestic prices in the manufacturing sector falling at the fastest rate for five years.”

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