UK manufacturing sector struggles due to weak export demand

UK manufacturing sector is struggling. Output has fallen in three of the last four months, with a dip of 0.8% mom in July, the most recent observation. The main culprit appears to be weak external demand. 

The September CBI Industrial Trends survey will provide us with the first update for that month and the news is not expected to be good. Export orders in both this and the manufacturing PMI survey have been far weaker than total orders in recent months. 

"Moreover, the latest quarterly outlook of the Engineering Employers' Federation reported export orders at a six-year low. The CBI survey is likely to reflect that trend with a decline in export orders leading to weaker total orders and output as well", says Societe Generale.