Factories have been stung by the strength of the pound and continuing problems in the eurozone, according to an industry survey.
Manufacturing orders stagnated unexpectedly in March as new business from abroad collapsed at its fastest rate in more than two years, figures published by the CBI show.
As a result of the weak export demand, the total orders balance fell to zero, the CBI’s industrial trends survey reports, the lowest rate since October last year.
Despite the disappointment, however, domestic demand was resilient and overall factory performance was better than the average of the past 20 years.
“Sluggish export performance seems to be a headache that won’t go away, with a still-subdued eurozone and headwinds from a stronger pound,” Rain Newton-Smith, the CBI’s director