Food and drink powers output growth
21 Aug 2018
The food and drink sector enabled output growth to perform strongly for the last quarter to August, despite an overall slowdown in the rate of increase, reports the Confederation of British Industry's Industrial Trends Survey.
Of nearly 380 manufacturers in 17 sub-sectors analysed, some 13 reported growth – driven by food and drink but also tobacco, said the report.
In fact, the performance is below that of the preceding quarter but remains substantially above the long-term average stated the CBI. It is expected that the rate of growth will be maintained during the autumn.
However, CBI head of economic intelligence Anna Leach cautioned that continued uncertainty over Brexit remained a potential risk to future success.
“Manufacturing growth remains strong, supported by the lower level of sterling and strong global economy. But risks to that growth remain high in light of international trade tensions and the uncertainty caused by Brexit.”
She reiterated the confederation’s opposition to suggestions of the viability of a no deal option for EU withdrawal.
Manufacturing growth remains strong, supported by the lower level of sterling and strong global economy. But risks to that growth remain high
Anna Leach, head of economic intelligence, CBI
“Make no mistake, a ‘no deal’ scenario would be immensely damaging not just for UK manufacturers, but also the rest of the EU. So both sets of negotiators need to demonstrate flexibility and compromise to protect trade flows worth 600 billion euros each year, particularly against the backdrop of increasing protectionist rhetoric.”
* Food and Drink Federation chief executive Ian Wright has called on more UK firms in the sector to make the most of export opportunities.
Speaking after publication of the Government’s new export strategy he remarked: “Food and drink is a UK exports success story, with global sales reaching a record level of £10.6 billion for the first half of 2018. Yet the majority of UK food and drink businesses still do not export and, as a country, we export less food and drink than some of our key competitors.
“We therefore welcome the publication of today’s Export Strategy as an important step in helping business to understand and seize the opportunities that exporting provides.”
