MNI: UK Manufacturing Picks Up In November: CBI

--October CBI Total Order Book Balance +10% Vs -6% October 

By Jai Lakhani

     LONDON (MNI) - UK manufacturing orders recovered in November, coming in at

+10, after falling to -6 in October according to the latest quarterly CBI

Industrial Trends Survey.

     --MONTHLY ORDERS AT FOUR MONTH HIGH

     The rise in total orders in November was a bounce-back to a four-month high

after October's weak -- but above average -- showing. Driving the growth was

output expanding in 13 out of 17 sub-sectors, with food, drink, and tobacco,

motor vehicles and transport equipment and chemicals being the key drivers

behind growth.

     The volume of export order book growth also rebounded, up from -4 in

October to 0 in November -- remaining significantly below the average of +17.

Total orders over the three months to November was reported at +18, after +13 in

October. 

     --BUSINESSES STILL ANXIOUS 

     Whilst November's readings are encouraging, growth is expected to slow in

the coming quarter, with 29% predicting growth and 21% a decline leaving a

predicted balance of output growth of +8, down 10 points from the current three

months to November reading of +18. This suggests the bleak assessment of the UK

manufacturing sector in October still weighs on businesses as the UK detaches

itself from the EU. 

     --"ENCOURAGING" FIGURES

     "It's encouraging to see an improvement in the manufacturing sector after

October's stark survey, with order books and output growth on the up," said Rain

Newton-Smith, CBI Chief Economist.

     Newton-Smith went on to add that the future relies on what the trade

environment with the EU will be. "But the future prosperity of manufacturers

depends on getting the Brexit deal right. The overwhelming message from business

to the Government is to make progress, don't go backwards".

     Tom Crotty, Group Director of INEOS and Chair of CBI Manufacturing Council,

said that it is unsurprising manufacturers top priority is to ensure

frictionless trade and a Brexit transition period. 

     "Manufacturers' top priority unsurprisingly continues to be for the

Government to secure frictionless trade and a Brexit transition period. The

sector will also be urging the Government to rethink its proposed approach to

immigration policy, which, by placing tight restrictions on low-skilled labour,

would have a particularly negative impact on manufacturers," he added. 

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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