The CBI industrial trends monthly survey suggests that some manufacturers expect the volume of output to increase in the next few months but even more expect it to fall. Overall the decline in output is expected to slow quite a lot over the next quarter. The survey results show an improvement on the last survey and the level is back to where it was last September before the collapse of leading US bank Lehman Brothers.
Demand for UK made goods is weak with order books still below normal. Exports were also low even though the pound is relatively weak at the moment. Prices are expected to fall. Stock levels remain more than adequate to meet demand even though firms have been letting them run down. The practice of running down stocks is expected to continue. Many managers seem to believe the worst of the recession is over.
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