The CBI quarterly Industrial Trends survey results were released yesterday. They report that the decline in manufacturing output has slowed in the last three months and the prospects are brighter. Confidence is returning to the sector and growth is expected in the next quarter. The comparative weakness of the pound is also helping British companies to compete in export markets.
The volume of output from manufacturing fell again over the quarter according to a majority of companies responding to the survey though at a much slower rate of decline than in the last quarterly survey in July. A small majority of respondents also expect to see growth in the next quarter. Marginal growth is also expected in the domestic market even though demand has continued to slow. The contraction in demand for exports was less than expected and companies expect export orders to increase over the next three months. More businesses are optimistic about exports for the coming year than they have been since 1995. More and more businesses are also becoming more confident in the general business situation.
Destocking is continuing as stocks of finished goods fell at a record rate for a second time. Levels are more than adequate. Firms are planning to spend more on innovation over the next year. Expenditure on staff and training, plant and machinery is expected to remain unchanged.
No comments:
Post a Comment