Manufacturers´ order books show signs of stabilising in January, CBI says

Factory output and new orders in the UK showed signs of stabilisation at the start of the year, but there continued to be few signs of improvement in the export outlook, according to the results of a widely-followed survey.

The Confederation of British Industry´s gauge of total new orders at UK manufacturers for the three months to January printed at -4%, up from a reading of -8% in October.

Economists had penciled in a reading of -10%.

However, the sub-index tracking manufacturers´ output volumes came in at -2%, below its average reading of +1%.

Rain Newton-Smith, CBI Director of Economics, said: “Manufacturers have seen a flat start to 2016 but while we have seen real problems in some industries in the last few months, there are signs that orders and production are stabilising overall."

Newton-Smith referenced uncertain global growth prospects around the world, uncompetitive energy costs and a stronger pound as headwinds facing UK manufacturers when selling abroad.

He added that investment in innovation and skills would be critical for the long-term performance of the UK´s exports.

Manufacturers´ investment intentions for the year ahead rebounded across the board, CBI said.