Brexit #4 - How Can You Capitalise On The Opportunities?

Added by Love Business East Midlands | 28 July 2016

UPDATED: 29 July 2016

New orders growth at their lowest since January 2012

…But signs that factories are benefiting from a weaker pound

The Confederation of British Industry (CBI) survey of 506 manufacturers showed the UK's competitiveness in international markets improved at the strongest pace in more than six years, with the biggest boost seen in non-EU markets.

Boost to export competitiveness

“Manufacturers picked up the pace over the second quarter, with output growing solidly. We’re also seeing encouraging signs of a boost to export competitiveness from a weaker sterling.”

Rain Newton-Smith, CBI Chief Economist

The CBI Industrial Trends Survey

Highlights of Key findings from the past quarter:

30% of firms said the volume of output over the past three months was up and 14% said it was down, giving a balance of +16%. This brought the pace of growth to levels last seen two years previously (+23% in July 2014)
32% of businesses reported an increase in total orders, and 23% a decrease, giving a balance of +9%, the highest since July 2015 (+9%)
The balance for new domestic orders (+11%) rose to its highest since July 2015 (+12%)

Competitiveness in the EU (+6%) improved at the fastest rate since April 2010 (+16%). It also rose in non-EU markets (+12%).

Highlights Key predictions for the next quarter:

Total new orders are expected to be flat (0%), the lowest balance since January 2012 (-2%). Domestic orders are also anticipated to be broadly flat (+1%)
A balance of +10% expect export orders to rise (21% expect an increase, and 11% a fall)
19% of businesses anticipate a rise in output volumes, and 12% a fall, giving a rounded balance of +6%
14% expect employment to increase, and 20% expect it to decline, giving a balance of -6%