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Manufacturers order books afford some confidence

UK manufacturers are expecting modest growth in output over the next three months, a survey from the CBI has found.

Order books for those surveyed had improved from August, and of the 425 respondents, 28% expect to increase their volume of output.

This confidence follows last month’s expectations of a flat period for output, as total order books saw an improvement from August.

19% of firms reported order books as above normal, and 28% stated below normal. The balance of -8% is well above the long-run average of -17%, and back in line with July’s results -6%.

Export orders also recovered, according to the survey, with a balance of -10%. This is above the long-run average of +14%.

Anna Leach, CBI Head of Economic Analysis, said: “Domestic and overseas demand have improved in this survey following last month’s falls, providing a foundation for somewhat better output growth expectations. Manufacturers believe that there will be a modest rise in output over the coming months, driven largely by the chemicals and food and drink sectors.

“But uncertainty is expected to build through the autumn – with key decisions to be made in the Eurozone and the approach of the US fiscal cliff – meaning that conditions are likely to remain difficult for UK manufacturers.”

This was posted in Bdaily's Members' News section by Tom Keighley .