20 July 2016
Employment continues to grow, but underlying uncertainty remains.
Read the CBI/Pertemps Labour Market Update here.
27 July 2015
Manufacturing growth remains steady but exports pressured by stronger sterling
Manufacturing growth continued in the three months to July, but exports are 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 volume of new export orders rose slightly, but the outlook for the next quarter is gloomier. Survey respondents continue 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 remain 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 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.”
Key findings – next quarter
Separately, the CBI published monthly figures for July, which showed that total order books for manufacturers (-10%) were the lowest since July 2013 (-12%). Export orders were broadly in line with their long-run average (-17% against an average of -20%).
14 July 2016
Our regular roundup of the key economic indicators
14 July 2016
Carolyn and Josh focus on post-referendum priorities during their Westminster rounds