Small-and medium-sized manufacturers saw growth in the three months to July, despite a dramatic fall in export prices, according to a new survey out today.
According to the latest Confederation of British Industry (CBI) SME trends survey, companies reported steady growth in domestic orders, a rise in output in line with expectations and a slight uptick in business optimism.
But new export orders fell and export prices dropped off sharply, falling at their fastest pace since October 2003. The CBI said such a slide in prices would likely limit export orders in the next quarter.
Commenting on the results, Anna Leach, head of economic analysis at the CBI, said: “The relative strength of the pound against the euro is hitting export orders and margins. This, alongside uncertainty regarding Greece, threatens growth prospects in the Eurozone.”