The manufacturing sector looks to be improving but profits are threatened by rising costs according to the latest Industrial Trends survey from the CBI. The first three months to April show that orders are rising for British made goods overseas but as order books are still recovering from 30 year lows, total order books are still below normal.
The growth in orders is expected to continue over the next few months and production is expected to increase along with it. It is reflected in business confidence which continues to improve. Average unit costs are rising and though domestic prices were stable prices may increase in the next three months. Most firms say they working below capacity.
Firms have continued to de-stock but levels of finished goods have fallen in the quarter and are expected to stabilise in the next as is work in progress as the decline in raw materials slows down. Credit and finance are expected to continue to limit output over the next three months and even constrain exports. A majority of firms have plans to invest in training and retraining and in innovation.
Showing posts with label stock levels. Show all posts
Showing posts with label stock levels. Show all posts
Thursday, 22 April 2010
Friday, 18 December 2009
High Street Building Up To Christmas
The CBI report retailers are enjoying an early build up to Christmas with the third successive month of growth in sales. The Distributive Trades survey suggests sales have grown over last year and could grow still more before the end of the month. Sales for the time of year are below seasonal norms and described as poor by some retailers.
Stock levels remain almost unchanged from November but the volume of orders rose again but at a slower rate than expected. Orders are expected to flatten in the New Year, as are sales.
The highest rates of growth were in the grocery, durable household goods, footwear and leather and furniture and carpets. Booksellers and stationers saw a reversal of their recent growth and there was a fall in sales at the chemists.
Industrial materials reported an change for the better as fourteen months of falling sales ended with a flat month. Clothing, textiles and footwear wholesalers saw their best sales growth since 2004.
There was a second month of growth for motor traders who expect that to contiue into the New Year due to the scrappage scheme. Sales for the month were said to be above average.
Stock levels remain almost unchanged from November but the volume of orders rose again but at a slower rate than expected. Orders are expected to flatten in the New Year, as are sales.
The highest rates of growth were in the grocery, durable household goods, footwear and leather and furniture and carpets. Booksellers and stationers saw a reversal of their recent growth and there was a fall in sales at the chemists.
Industrial materials reported an change for the better as fourteen months of falling sales ended with a flat month. Clothing, textiles and footwear wholesalers saw their best sales growth since 2004.
There was a second month of growth for motor traders who expect that to contiue into the New Year due to the scrappage scheme. Sales for the month were said to be above average.
Thursday, 19 November 2009
Manufacturing Demand Still Weak But Expected To Improve
A small majority of manufacturing firms responding to the CBI Industrial Trends Survey reported that they expect demand to improve slightly over the next three months. Many of the firms reported order books well below normal and weak export order books only slightly better than last month due to a weaker pound.
Stock levels are more than adequate to meet demand due to capital goods producers pessimistic about output. Domestic prices are expected to fall slightly over the next quarter similar to that in October.
Stock levels are more than adequate to meet demand due to capital goods producers pessimistic about output. Domestic prices are expected to fall slightly over the next quarter similar to that in October.
Tuesday, 27 October 2009
Slight Growth In High Street Sales
There was a slight improvement in high street sales in the year to October according to the latest CBI distributive trades’ survey results. Businesses also expect volumes to improve further in November.
The improved results in volumes were greater than expected and the best figures since December 2007. A small percentage of retailers reported poor sales for the time of year, which was an improvement on last month, and they expect sales to remain below seasonal norms in November.
Stocks are more than adequate to meet demand but more orders are expected in November than were placed in October.
The sectors that have performed particularly well include durable household goods, furniture and carpets, booksellers and stationers. Clothing, footwear and leather retailers and grocers also reported sales growth. Sales fell for chemists and the hardware, china and DIY retailers.
The wholesale sector's sales volumes were flat for the second month running but better than the expected fall. Food and drink wholesalers reported strong sales growth, but industrial materials and builders merchants had a difficult month. The motor trades saw trade volumes fall and many expect sales to fall again in November. Vehicle sales, rather than parts and accessories were the main factor in the poor sales report.
The improved results in volumes were greater than expected and the best figures since December 2007. A small percentage of retailers reported poor sales for the time of year, which was an improvement on last month, and they expect sales to remain below seasonal norms in November.
Stocks are more than adequate to meet demand but more orders are expected in November than were placed in October.
The sectors that have performed particularly well include durable household goods, furniture and carpets, booksellers and stationers. Clothing, footwear and leather retailers and grocers also reported sales growth. Sales fell for chemists and the hardware, china and DIY retailers.
The wholesale sector's sales volumes were flat for the second month running but better than the expected fall. Food and drink wholesalers reported strong sales growth, but industrial materials and builders merchants had a difficult month. The motor trades saw trade volumes fall and many expect sales to fall again in November. Vehicle sales, rather than parts and accessories were the main factor in the poor sales report.
Thursday, 22 October 2009
Manufacturing Returning To Growth
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.
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.
Thursday, 21 May 2009
Manufacturing Expected To Continue Falling But More Slowly
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.
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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