Manufacturers suffer in downturn

UK manufacturers, including clothing and apparel makers, continue to suffer from stagnant

output, as fall in demand and concerns over export continues.

In a survey by the CBI, of the 387 manufacturers responding to its quarterly Industrial Trends Survey, 27% said output rose, while 26% said that it fell. The resulting rounded balance of +2% showed that production weakened sharply in the three months to January.

According to the report, domestic and export orders both fell for the first time in two years. The fall in domestic orders (a balance of -17%) was the first since January 2010, and the decline in export orders (-19%) was the first since October 2009.

Commenting on global economic conditions, John Cridland, CBI Director-General, said: “We know that 2012 will be not be an easy year. The watchword continues to be uncertainty. The crisis in the Eurozone is still hanging over the UK, threatening future growth. With large amounts of peripheral countries’ debt maturing in the coming months, Eurozone stability is far from assured.

“Nevertheless, within this survey there are some tentative signs that things could improve somewhat in the coming quarter. Key factors behind this include the fact that the US recovery has been better than expected, and the impact of the credit rating downgrades in the Euro area has been muted.”