Manufacturing stabilises in November

However, export orders are at their lowest for almost three years

Manufacturing orders stabilised slightly in November, but exports are at their lowest for almost three years, according to the latest CBI monthly Industrial Trends Survey.

The survey found that 20% of manufacturers reported that the level of their order books was above normal, while 32% said it was below normal giving a rounded balance of -11%. That is above the long-run average of -15% and represents an improvement from a balance of -18% in October.

However, 11% of firms said their export order books were above average, while 40% said they were below, giving a balance of -29%. That was below the long-run average (-20%) and at the lowest level since January 2013 (-29%).

However, another small fall is expected in the coming three months, according to the CBI's figures.

Meanwhile, price expectations remain under pressure, although they crept back closer to their long-run average. Manufacturers reported that they expect average prices to be broadly flat in the next three months (-2%).

Rain Newton-Smith, CBI director for economics, said: “Poor export performance is weighing on the UK economy, as manufacturers are held back by a strong pound and a weakening global growth outlook.  

“To ensure UK manufacturers can pack a punch on the world stage, business will want to see the government prioritise areas of growth enhancing spending – on exports, infrastructure, skills and innovation – in next week’s Spending Review.

“Furthermore, we would caution against the introduction of additional business costs that could hamper the competitiveness of UK manufacturers at home,” Newton-Smith added.