- Rain Newton-Smith, CBI director of economics
UK factories started the year on a weak footing as export orders declined at a steeper pace in January compared with December, while total orders also fell, according to the Confederation of British Industry. The industry has been struggling for years as weakness in the key trading partner, the Euro zone, as well as strength of the Pound undermined exports growth. Unfortunately, the CBI reported that improvements are not on horizon. Total factory orders dropped between December and January to record a negative balance of -15%. However, the less volatile quarterly reading improved to –4%, up from –12% recorded in October. While domestic demand remains resilient, global turmoil in denting further growth prospects. According to Markit/CIPS PMI survey, manufacturing activity in the UK slowed in December, with the output and new order growth easing. The overall performance of the UK manufacturing sector in 2015 was below levels seen in 2014.
UK manufacturing dropped 0.4% in November amid a warmer-than-average weather. However, it grew on a quarterly basis by 0.5% in the three months through November, the biggest gain since October 2014, and up from 0.3% in the quarter to October.
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