Manufacturers report pick-up in demand
MANUFACTURERS in the UK have reported a pick-up in demand in August as overseas orders returned to normal levels.
In the latest CBI Industrial Trends Survey, 21% of manufacturers said that total orders were above normal and 34% said they were below.
The resulting rounded balance of -14% is the highest since August 2008 (-13%) and a slight improvement on July’s balance of -16%.
Export order books strengthened more noticeably, with 24% reporting them to above normal, and 24% below normal. That gives a rounded balance of -1%, compared with -12% in the July survey.
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Overall, manufacturers expect production to rise further over the next three months with 30% predicting output will increase, while 20% anticipate a fall. The resulting balance of +10% is an improvement on expectations in July (+6%), with predictions for manufacturing production edging higher after weakening over the past two months.
CBI Head of Economic Analysis, Lai Wah Co, said:”Prospects for the manufacturing sector remain very positive. Demand is steadily improving, helped by the revival of export orders after some weakness last month, and manufacturers expect slightly stronger production growth in the three months ahead.
“However, inflationary pressures within the sector have not fully faded, and firms are predicting a faster rise in output prices over the next quarter.”
