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Local Decline in Export Orders
Strong international demand for British-made goods drove growth in new orders in most UK regions, according to the latest quarterly Regional Trends Survey published by the CBI and Experian, though Northern Ireland showed a ‘maginal’ decline.
However, the deteriorating economic outlook has depressed confidence in manufacturing businesses across the UK and, as costs continue to surge, virtually all regions plan to raise their prices in the coming quarter.
The national figures was underpinned by healthy export orders as most regions reported an increase. While export orders were expected to decline in the North West and Northern Ireland, their expectations for total new orders are among the strongest for all the regions.
Reflecting the economic uncertainly in both the UK and abroad, every UK region reported a decline in general business confidence.
This was particularly sharp in Northern Ireland, the West Midlands, Yorkshire and the Humber and the South West.
Input costs have increased markedly in every region across the UK over the past three months. However, apart from in Wales, manufacturers were able to push through domestic price rises to help mitigate the squeeze on profit margins.
Investment intentions in plant and machinery remain subdued. Only two regions expect to increase capital expenditure in the year ahead. In several regional, there are expectations of much reduced expenditure in the coming 12 months. The regions with the most depressed investment outlook are Northern Ireland, the South East and London and the East of England.
Peter Gutmann of Experian said: “The survey results provide some encouragement at a testing time. Most regions are quite upbeat about orders and exports for the next three months. Perhaps manufacturers are pinning their hopes on the boost to UK competitiveness from Sterling’s near 10 per cent depreciation against the euro since November as an offset to slower growth in the Eurozone.” |
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