UK industrial recovery slowing, says CBI

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The Independent Online

In a sign that economic recovery is far from guaranteed, business leaders reported that overall demand for UK manufactured goods weakened a little this month, following a significant improvement in May, although order books remained still close to their long-term average and much improved on the depths of recession last year.

In the Confederation of British Industry's monthly Industrial Trends Survey, 19 per cent of manufacturers said orders were above normal, while 42 per cent said they were below. The resulting balance of minus 23 per cent was down slightly on the figure in May (minus 18 per cent). Export order books were also a little weaker compared with last month.

Ian McCafferty, the CBI's chief economic adviser, said: "UK exports continue to be boosted by the weak pound and strengthening world trade. Firms still expect a healthy rise in production in the coming months and inflationary pressures look to be easing a little."

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