MNI: UK Manufacturing Stumbles In January As Exports Slow: CBI

--January CBI Total Order Book Balance -1% Vs +8% December

By Jai Lakhani

     LONDON (MNI) - UK manufacturing orders were sluggish in January, coming in

at -1, the latest CBI Industrial Trends Survey showed. The fall represents a

nine point drop after December saw a slight fall of two points to +8. 

     --MONTHLY ORDERS MODERATE

     The fall of nine points meant the index was pushed down to a three month

low. However, the reading remains notably above the long-run average of -13.

Given Brexit uncertainty, it was unsurprising that export order books weakened

to 19 points to -5. Again, whilst above the historical average of -17, the

January reading was not seen lower throughout the whole of 2018. 

     In the three months to January, the volume of output dropped 7 points to

+16 from +23 in December. Growth was reported in 13 out of the 17 sub-sectors

and was driven primarily by food, drink & tobacco, chemicals, and electronic

engineering manufacturers. The data appears to suggest output in the past three

months was held up by November and December in particular. 

     --BUSINESSES ANXIOUS

     January's reading adds to the plethora of sentiment data pointing to Brexit

uncertainty impeding production. 

     As Anna Leach, CBI Head of Economic Intelligence, said: "The manufacturing

sector is clearly feeling the pinch of Brexit uncertainty, with worsening

business sentiment coinciding with an ongoing reluctance to invest in new

facilities, machinery, innovation and training." 

     --SOLUTION TO BREXIT DEADLOCK VITAL 

     "The last quarter has been a challenging one for manufacturers who are

understandably bracing themselves for the frightening prospect of 'no deal

Brexit... It is vital that the Government finds a positive solution to the

current Brexit deadlock so firms can continue to compete both home and abroad,"

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

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

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

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