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UK manufacturing growth slows in February - CBI
UK manufacturing growth slowed as expected in February as the boost from a weakening pound starts to fade, according to the latest figures from the Confederation of British Industry.
The CBI's order balance dropped to +10 from +14 in January, in line with expectations and marking a four-month low but still well above the long-run average of -14.
Meanwhile, the balance of export orders fell to +10 from +19 the month before and the balance of output expectations declined to +16 from +24. Volume of output in the last three months came in at +24 compared to +21.
The selling prices balance slid to +25 in February from +40 the previous month, but remained well above its 30-year average of +16.
Anna Leach, CBI head of economic intelligence, said: "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."
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "The further decline in the CBI's total orders balance in February indicates that the support to growth in manufacturing output from sterling's depreciation is beginning to fade."
He added that the boost to growth from sterling's depreciation will continue to fade as this year progresses.