Manufacturers’ order books wither
UK manufacturers reported a deterioration in their total and export order books in August, while expectations for output have flattened out.
456 manufacturers were surveyed for the latest monthly Industrial Trends Survey, and 36% reported that order books were below normal.
The balance of -21% represents the lowest return since the end of last year, and similarly export orders have weakened with manufacturers reporting a balance of -17%.
Output expectations among manufacturers for the next three months have also worsened, as output is now expected to be flat, which follows two previous surveys in June and July where expectations were +7% and +11% respectively.
Output prices are also expected to be flat over the coming quarter for the third-consecutive month, with a balance of +1%.
Stock levels are below average, as a balance of +9% say stocks are at least adequate to meet demand; the lowest figure since June 2011.
Anna Leach, CBI Head of Economic Analysis, said: “Overall demand for manufactured goods has eased back this month, led by a weakening in the consumer goods sector following a strong July figure. This sector also contributed to the weakening in output expectations for the next three months, alongside investment goods.
“The economic environment for UK manufacturers remains challenging, with domestic demand relatively muted and the ongoing Eurozone crisis now seeming to drag on broader global economic momentum.”
This was posted in Bdaily's Members' News section by Tom Keighley .
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