CBI: Manufacturing optimism evaporates
23 Aug 2012
London – UK manufacturers have reported a deterioration in both their total and export order books in August, while expectations for output growth have flattened.
Of 456 manufacturers responding to the CBI’s latest monthly Industrial Trends Survey, 15% reported that order books were above normal, while 36% stated that order levels were below normal.
Similarly, export orders have weakened with manufacturers reporting a balance of -17% - the lowest figure reported since January, according to the CBI.
Prospects for manufacturers’ output growth over the course of the next three months have also declined, as manufacturers predicted output to be flat over the next three months. This contrasts sharply with sentiment from as recently as July, when expectation were for an 11% increase.
“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,” said Anna Leach, the CBI’s head of economic analysis.
“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,” Leach concluded.
