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Some order progress for manufacturers

Some manufacturers reported an increase in their total order books for the third month running, according to the latest CBI Industrial Trends Survey.

Of 392 manufacturers who responded to the survey, 18% reported total orders were above normal and 30% below normal.

The resulting balance shows a slight increase on the previous months, and a little higher than the long-run average.

While there was no further improvement in export order books, the balance of manufacturers reporting export orders above the normal was higher than the long-run average.

Expectations were subdued as many respondents expected output to remain flat across the next three months.

The mechanical engineering and aerospace sectors were drivers of growth but, sectors such as chemicals and electrical engineering expected declines in output.

Expectations of output price inflation over the next three months picked up to 17%, the highest anticipated rate since March. Firms kept levels of stocks low as output prospects remained weak.

Anna Leach, CBI Head of Economic Analysis, said: “December’s survey reports a welcome improvement in manufacturers’ order books and their expectations for output. Even so, they remain hesitant in predicting further output growth and are keeping stock levels low. Conditions in the sector and the wider economy are likely to remain fragile until global conditions improve over the course of 2013.”

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