The manufacturing sector has proved resilient in the wake of the credit crunch and the more pessimistic economic predications of three months ago failed to materialise, the latest CBI Industrial Trends survey reveals.
The survey, released yesterday, said firms’ orders growth has held up, with export business in particular holding up.
Demand continues to grow, with 28% of companies surveyed saying total new orders increased in the three months to January and 17% reporting a decrease. This balance of +11% exceeded CBI expectations but slower growth is expected in the next three months.
Despite the credit squeeze, manufacturers are not reporting access to or cost of external finance as a factor likely to limit either output or investment expenditure, while skilled labour shortages are less likely to prove a problem than in the last six months.
“Thankfully, the expected wobble in demand didn’t materialise in the last three months and orders for British-made goods have held up, particularly from abroad,” said Ian McCafferty, CBI chief economic adviser.
“What we are seeing is a necessary rebalancing of the economy, in the face of slowing consumer spending.”
