Trends Suggest Things Will Get Better

New orders increased over the last three months along with export deliveries according to the CBI Industrial Trends survey. Unit costs have increased generally. There was also an increase in the volume of output. Currently 64% of firms are working below capacity but the volume of new orders is expected to improve over the next three months. Export deliversies are also expected to increase. Production is expected to increase likewise but firms expect employment to fall and unit costs increases are expected.

Manufacturing Output Expected To Grow

Production is expected to grow in the next three months manufacturers said in the latest CBI Industrial Trends Survey. There is a general improvement in the trend of demand for UK manufactured goods and growth expectations have accompanied the need to replenish stocks. Price pressure intensified again and many firms expect to raise prices.

Demand For Manufactured Goods Slightly Weaker

The latest Industrial Trends report from the CBI says that overall demand for UK manufactured goods weakened slightly in June. Order books are still close to their long-term average. Export orders are however also weaker compared with last month but almost normal. Output is still expected to be increased during the next three months. Prices are expected to rise but more slowly than the last three months. Consumer goods are not exopected to rise and no change is expected in capital goods. Stocks are more than adequate to meet demand for the third month in a row, but below the survey's long-run average.

UK Order Books Looking Better

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.

Growth In Manufacturing Output

An increase in overseas demand for UK goods and continued stock reduction saw manufacturing production increse for the first time in two years according to the latest CBI Industrual Trends survey for the three months to January 2010. Weak demand and access to finance mean that the outlook is still uncertain.

The survey reports the strongest output since January 2007 and the first increase in export orders since January last year. De-stocking is slower however and demand is weaker than expected. Business confidence is continuing to get better and more more managers are optimistic than three months ago. Fewer businesses reported reductions in staff numbers.

Business are also reported to be planning to invest in training and retraining and innovation. Capital investment in buildings is expected to be reduced but plant and machinery investments will remain almost unchanged. Firms are working below capacity and domestic prices are expected to rise.

Weak Recovery Reflected In December Demand

Manufacturers are saying that the recovery they experienced over the last few months is very fragile and it is reflected in the recent downturn in output. A slight balance of respondents taking part in the latest CBI Industrial Trends survey report weak demand and order books below normal. The survey also reported the balance of adequate stocks has fallen slightly. Prices are expected to fall in line with the lst two months.

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.

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.

Conditions Remain Difficult In Manufacturing

Orders for British made goods were below normal again both at home and abroad in the month. Firms responding to the CBI Industrial Trends Survey also reported expecting things to remain the same during the next month. It was a slight improvement on August but it is the latest in a sequence of 15 months of negative survey balance.

Exports are particularly weak despite the more favourable value of sterling. No great change is expected in production over the next three months though 25% do expect an increase in volume of output.

Manufacturers Outlook Getting Brighter

The outlook for manufacturing is the least negative since June 2008 following months of destocking. Only a slight majority of UK manufacturers in the latest CBI Industrial Trends survey expect the volume of output to decrease in the next three months. However demand remains very weak with a majority of manufacturers reporting total order books still below normal for the seventh consecutive month. Export orders are also weak despite the weaker pound.

Manufacturing Decline Slowing Down

The CBI quarterly Industrial Trends survey suggests the rate of decline in manufacturing may be slowing but a return to growth is not within sight for the next quarter at least. Firms are continuing to run down stocks and stocks of finished goods running down at the fastest rate for over 50 years. However, stock adequacy is such that firms are planning to continue to run them down at the same rate next quarter. Export demand also continues to fall despite the weakness of the pound and price cuts. Firms also reported employment continues to fall.

Export Orders Down

Manufacturers report that export order books are below normal for this time of year as demand for British made goods weakened last month. The latest CBI Industrial Trends Survey says it is the lowest since October 1998. It goes against the recent slight improvements seen since March this year. Total order books are still weak but show a modest improvement and the pace of decline in output is slower. Prices are expected to fall slightly over the next quarter but more slowly than previously expected.

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.