According to the latest monthly CBI Industrial Trend Survey, the manufacturing market is stabilising due to consistent demand and increase of production.
The recent survey showed that the total export of orders has risen (especially in the food, drinks and transport sectors) and that growth in output has continued. Although overseas demand is not specifically booming, selling prices are expected to stay constant which is good news for a rather volatile industry.
Manufacturing and the EU referendum
The EU referendum seems to have a standstill effect of manufacturing towards the UK, the report argued. It found that 13% of businesses have found an increase in export numbers compared to the 27% of businesses who found a decrease. Rain Newton-Smith (the Chief Economist of CBI) stated that “exporters may have been driven away by the uncertainty in the run-up to the EU referendum.”
The results of the EU referendum will be known in the early hours of tomorrow and the ultimate choice made has the potential to dramatically alter business in the UK, especially the manufacturing market. It has been argued by some that if the UK leaves Europe there will be extra fees and tariffs from EU countries trying to export or buy from the UK, while others have made the case that leaving the EU will free exporters from unnecessary ‘red tape’.