The Fragile Foundation of the Manufacturing Recovery

The Confederation of British Industry's monthly manufacturing survey suggests a fall in the recovery of the British manufacturing unit. The factory orders are said to have seen a downfall at the sharpest rate since April.

The orders balance are said to have reached to -28 this month from -17 in September. While in the month of February the export orders were reportedly -5, they have in the month of September gone as low as -21.

Ever since July 2009, business optimism is now said to have reached the lowest levels, the survey conducted in parallel, showed. The cost pressures are further said to be stressing the manufacturers' profit margins.

"Of particular concern is the sharp fall in the export orders balance, suggesting that the lower pound is still struggling to provide much support to the export-focused sector", said Samuel Tombs at Capital Economics.

He also said that as per the numbers it was quite evident that the manufacturing recovery had fragile roots. The survey has further hinted that in the coming months it is likely that the overall recovery would fade quite sharply.

Howard Archer at IHS Global Insight added saying that the survey had little contribution in easing the fears about the manufacturing activity taking place.