British factory order growth has reached a four-month low, according to the latest manufacturing trends survey from the CBI.
The Confederation of British Industry surveyed 387 factory managers over January and February, and found 30 per cent of manufacturers reported total order books to be above normal in the last quarter, whilst 20 per cent said they were below normal.
That gives a net balance of +10 in the three months to February, down from +14 in January; the weakest growth since October.
The balance of export orders fell more sharply, from +19 to +10 in February -- a sign that overseas demand for UK goods weakened this month.
Anna Leach, the CBI’s head of economic intelligence, said manufacturers are still riding positive growth in exports, but there are fears uncertainty over Britain’s exit from the EU could hurt the sector: “This month saw another strong showing from UK manufacturers. Although order books weren’t quite as buoyant as they were last month, demand remains strong and output grew briskly… With the Brexit negotiations reaching a critical juncture, many businesses are concerned about future barriers to trade and are looking for clarity over the future relationship with the EU. Remaining in a comprehensive customs union will help alleviate some of those fears and give firms the confidence to invest and grow.”
Food, Drink and Tobacco manufacturing centre brought the highest growth over January and February 2018.