Chemicals demand ‘bucks’ industry slump

In its quarterly business survey, which looks at the fortunes of chemical and pharmaceutical manufacturers, 95% of those surveyed said sales volumes either remained at previous levels or increased in the first quarter of 2016, while 90% said exports remained at previous levels or increased.

Despite official data which has reported poor manufacturing outlook and a trade deficit, the chemical and pharmaceutical sector is working hard to meet the needs of customers

CIA chief executive Steve Elliott

Meanwhile, 87% said capital expenditure and research & development spending have remained at previous levels or increased so far this year.

CIA chief executive Steve Elliott said chemical and pharmaceutical manufacturers in the UK appear to be “bucking the trend” of poor results across industry.

Earlier this week, the Office for National Statistics (ONS) revealed the UK’s trade deficit was at it largest since 2008.

That news was compounded today with ONS figures that suggest UK industry has slumped back into a state of recession. Manufacturing production in the first quarter of the year fell by almost 2%, for instance.

In response to the sector’s weakened performance, Elliott said: “Despite official data which has reported low growth, poor manufacturing outlook and a trade deficit, the chemical and pharmaceutical sector is working hard to meet the needs of customers in the UK and across the globe.”