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CBI warns of slow recovery from recession

The recession is going to be a “long and slow” recovery, according to the Confederation of British Industries (CBI).

The latest quarterly Industrial Trends Survey shows overall manufacturing output is down 31%, and export demand was discontenting, with orders dropping 38%, even with the cheaper pound.

The return to growth is said to be “some way off”, with negative figures expected for the next quarter report.

CBI Chief Economic Adviser, Ian McCafferty, said: “These figures reinforce our view that the road out of recession will be long and slow.

“The further sharp decline in export orders is of particular concern as we are not seeing much of a boost from the relative weakness of sterling.”

The CBI survey, conducted between 25 June and 8 July, included 517 manufacturing firms – with 6% of those increasing employment, while 47% reduced their workforce.

Mr McCafferty added: “Larger sized firms have been able to tap into alternative sources of external finance, through share and bond issuance.

“For smaller firms, however, who do not have as wide a range of funding options, credit constraints have not eased.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .