British factories have reported a decline this month with an April tax increase and wages that burden moods but some companies see the encouragement of the expected increase in defense expenditure in Europe, said the British Industrial Confederation.
The CBI monthly balance for manufacturer’s output expectations for the next three months dropped back to the negative region in -2 in March after rising to the highest level of three months at +8 in February.
“Conditions in the British manufacturing sector remain calm,” said CBI Jones’s main economist.
“Although there are some pockets of strength, especially in the aerospace and defense sector, many companies continue to report that their order books remain weak,” Jones said.
The manufacturer said their customers were nervous in continuing with capital investment ahead of the increase in April for the contribution of social security paid by entrepreneurs and the British minimum wage, he said.
The CBI’s Headline industry index declined to 29 of -28 in February, far below the long -term average -13.
The export order balance increased to the highest four months -29 from -36 but also remains below average.
Source: Reuters
