#SMEs #ukmfg #engineering #CBI #britishmfg #ukeconomy SME manufacturers saw orders and output continue to fall in the three months to April, although they expect both to grow in the next three months, according to a new survey. The CBI’s latest SME Trends survey found that the decrease in total new orders was driven by falls in both domestic and export demand.
Output also fell for the fourth consecutive quarter. That said, manufacturers expect this to grow slightly over the next three months, on the back of strong predicted growth in export orders, while domestic orders look set to stabilise. Moreover, optimism about export prospects rose for the first time in a year.
Stephen Gifford, the CBI’s director of economics (pictured), said: “It’s been another disappointing quarter for small and medium-size manufacturing firms, which have seen new orders and output continue to fall.
"Nonetheless, firms do expect to raise output a little in the coming three months. The recent weakening in sterling will have boosted the competitiveness of the UK’s smaller manufacturing firms, with a strong pick-up in export orders predicted.
“However, conditions will remain challenging for the sector. Fears about the impact of political and economic conditions abroad on export demand have risen and there is little sign in this survey that credit conditions are improving.”