Manufacturing exports fall behind domestic orders

Exports have fallen behind domestic orders for manufacturing firms for the first time since 2016 amid continued uncertainty over Brexit, according to a new study.

Research by Make UK and business advisers BDO LLP suggested that firms were stockpiling goods, which was driving part of their production.

Exports have been unable to pick up since a drop last year, said the report, adding that Europe continued to be the main market for manufacturers.

Employment plans have picked up, indicating that manufacturers could be opting to hire a flexible workforce in the short term rather than make long-term investments, said Make UK.

Chief executive Stephen Phipson said: “While it is good news that output remains stable, it is no surprise that all the economic forecasts indicate that this will not last.

“Manufacturing needs certainty over Brexit to boost orders and exports and to protect the jobs of nearly three million people working in the manufacturing sector across the UK.

“Investment cannot recover while uncertainty continues to rule our political landscape. UK manufacturing needs a deal and time is running out.”