Small and medium-sized manufacturers reported a further small fall in export new orders in the three months to January but have seen “a very slight improvement” in February according to the CBI’s latest Industrial Trends Survey.
Firms’ optimism about their export prospects for the year ahead rose significantly (+13%) in January, compared with a fall (-14%) in the previous quarter.
According to the February report, businesses still expect output to grow in the coming quarter, with 30% predicting growth, and 19% a decline, giving a slightly reduced balance of +11%.
Rain Newton-Smith, CBI Director of Economics, said: “Despite the turbulence in emerging markets, economies such as China still represent a huge opportunity for British industry. A National Exports Commission, bringing businesses, trade experts and politicians around the table to advise on the policies needed to boost our export performance, would support manufacturers in selling their goods to key markets around the globe.”
The February survey of 497 manufacturers found 10% of businesses saying that their export order books were above normal, with 28% below normal, giving a rounded balance of -19%.
February’s level was an improvement on the previous month (-22%), and around average (-20%).
Ms Newton-Smith called on the Government to tackle the UK’s “outdated Business Rates regime” in next month’s Budget and to support investment through increasing the scope of capital allowances.
