Manufacturing sees small rise
Manufacturers' order books remain subdued, but have improved compared to recent months despite a setback in export markets, according to the CBI's monthly Industrial Trends Survey
Total order figures in February mark an improvement on the five-month low reached in January but remain below 'normal' and significantly down on the same time last year.
Export orders deteriorated in February, however, which follows news of a disappointing fourth quarter in the Eurozone and poorer US growth for the same period. Export order books were reported as below normal by 33 per cent of firms, whilst only 16 per cent said they were above normal. These figures suggest that the gains made between January and February came from the home market.
With total order books improving, manufacturers now expect modest growth in output over the next three months – 33% expect an increase and 23% expect a reduction, a positive balance of 10%. This follows a run-down in stock levels, bringing levels of finished goods to just below the long run average.
For the second month running, more firms expect to raise prices than to cut them in the next three months. But, although just under a quarter (2%) of firms predict they will be able to increase their selling prices, 56% expect prices to remain the same and 18 expect them to go down - a positive balance of 6%.