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Britain’s manufacturing exports ‘approaching stagnation’

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Britain’s manufacturing exports are ‘approaching stagnation’, while sales and orders for both the domestic and international markets are now ‘well below’ their pre-recession levels in 2007, a UK business body has warned.

Although the dominant services sector remains resilient to global adversity, most key balances in the sector dipped slightly in the last three months of 2015, the latest British Chambers of Commerce Quarterly Economic Survey said.
Domestic sales continue to contribute to overall growth but Britain’s businesses are ‘chafed and stagnating’ amid heavy red tape and tax compliance burdens, the report warns.

UK manufacturing export sales fell nine points to +1 per cent in the fourth quarter, the lowest level since the third quarter of 2009, while export orders also dropped to +1 per cent, the BCC said.

In the services sector, export balances fell by three points to +15 per cent,the lowest level since 2011.
On the plus side, the balances for investment in plant and machinery increased for both the manufacturing and services sectors, the BCC’s survey of over 7,500 businesses reveals.