IHS Global Insight's chief European economist Howard Archer on that weak CBI manufacturing data:

Export orders are being hampered by sterling’s strength against the euro. It is notable that the CBI reported that a balance of 21% of manufacturers believed that their competitiveness in the EU had fallen.

Nevertheless, overall orders are still above their long-term average levels, while the CBI balances for recent output growth and for production expectations over the next three months are also decent compared to long-term norms.

Looking ahead, there are some grounds for hope for manufacturers on the domestic demand front, but the export outlook currently looks highly uncertain given the ongoing strength of sterling against the euro.