Manufacturers’ optimism strong despite subdued March growth
UK FACTORIES saw slower growth in March, according to data released yesterday by the Confederation of British Industry (CBI).
Greater output volumes were reported by 32 per cent of firms in March, compared to 22 per cent that said output was down. The balance of 11 per cent remains above its long-term value of three per cent but is below February’s 17 per cent. The slowdown has failed to dampen sentiment with 34 per cent of firms predicting greater output compared to 12 per cent anticipating a decline. The balance of 22 per cent is down from last month’s 25 per cent but above its long-term average of seven per cent.
“Our manufacturers lost some of their steam from last month, but they continue to move steadily along a decent growth track,” said CBI economist Rain Newton-Smith. “Sluggish export performance seems to be a headache that won’t go away, with a still subdued Eurozone and headwinds from a stronger pound.”