Hopes of a New Year revival for British manufacturers were quashed today as the CBI warned of another month of plunging order books.
The business organisation’s latest industrial trends survey revealed an unexpected slide in factory orders in January, with a far worse than feared 20% net balance of firms reporting lower levels of business. Exports have tumbled for the third quarter in a row and expectations for the next three months are at their most subdued since October 2011.
Britain’s spluttering industrial sector is likely to be the main culprit behind the overall economy’s latest slip into the red between October and December.
Official growth estimates due on Friday are expected to show a 0.1% decline, putting the UK in danger of an unprecedented triple-dip recession. Analysts expect the UK’s industrial base — accounting for 16% of the economy overall — to have knocked some 0.3 percentage points off growth following a dire autumn.
Anna Leach, the CBI’s head of economic analysis, said: “While domestic demand and business optimism have steadied, export demand remains a concern for manufacturers, with orders continuing to fall.”
