UK manufacturing new orders fall at fastest pace in six years - CBI

(Sharecast News) - New orders in the manufacturing sector fell in July at the fastest pace in six years, according to a the lates Industrial Trends survey released on Thursday by the Confederation of British Industry. The CBI's total new orders balance fell to -24 from -22 in April, reflecting declines in both domestic orders and export orders.

A balance is the weighted percentage of companies reporting an increase minus those reporting a decrease.

The output volumes balance in the quarter to July was -24%, an improvement on -33% in the three months to June.

The decline was broad based, with falls in 13 out of 17 sub-sectors, driven by food, drink & tobacco, paper, printing & media and metal products sub-sectors.

Ben Jones, CBI senior lead economist, said: "We're seeing manufacturers being squeezed from both sides. Costs continue to climb while weak demand limits their ability to raise prices - leaving firms to absorb the pressure through shrinking margins, weaker investment and further cuts to employment.

"If the new administration is serious about reindustrialising Britain, restoring industrial competitiveness must be one of its first priorities. Cutting industrial electricity costs - which remain around 45% above the G7 median - would give manufacturers greater confidence to invest, expand and create jobs."

The survey, based on the responses of 338 manufacturing firms, was conducted between 5 June and 13 July.