Manufacturers predict modest drop in output

UK manufacturers expect a modest reduction in output over the next three months, new figures have shown.

According to the Confederation of British Industry’s (CBI) latest monthly Industrial Trends Survey, just 19 per cent expect to increase their volume of output within the upcoming three-month period.

Twenty-eight per cent predicted a fall, which results in a balance of minus nine per cent. This is the lowest forecast this year and is below the long-run average of plus six per cent.

Anna Leach, CBI head of economic analysis, said that a rise in overseas demand has not been enough to lift the figures.

The total order book of minus 21 per cent continued to be fairly flat this month and only slightly under the long-run average of minus 17 per cent, although there was an upswing in export orders.

Meanwhile, the export order book, which was reported as minus 12 per cent, moved above its long-run average of minus 21 per cent, bouncing back from last month’s low of minus 22 per cent.

The upturn was mostly driven by the food, mechanical engineering, drink & tobacco, transport equipment and motor vehicle subsectors.

However, Leach said that she expects UK growth to pick up somewhat in 2013.

Read more by Kirsty Hewitt at EN Magazine