–Adds Detail To Version Transmitted at 1000 GMT
–UK CBI Monthly Trends: Aug Total Orders -14 vs -16 in Jul
–UK Total Orders Book Least Negative Since Aug 2008
–UK CBI Industrial Trends: Aug output volume +10 vs +6 in Jul
–UK CBI Industrial Trends: Aug average prices +11 vs +5 in Jul
–UK CBI Industrial Trends: Aug export orders -1 vs -12 in Jul
–UK CBI Aug Stocks Balance Lowest Since Jun 2007
London (MNI) – The UK’s manufacturing sector saw an improvement in
total orders and output volumes in August, as demand for its goods
continued to improve, according to the CBI’s monthly industrial trends
survey.
The total orders balance rose to -14 in August from -16 in July,
its least negative outturn since August 2008. Export orders played a key
role in the improvement, with the export balance climbing to -1 from
-12.
The total orders outturn was better than analysts’ had expected.
Analysts median forecast was -17, with most expecting little change from
the July outturn.
The output volume balance rose to 10 from 6 in July.
Manufacturers are running down their stock levels, with the stocks
relative to demand balance falling to 1 in August from 5 in July, its
lowest level since June 2007.
The survey continued to show marked price pressures. The average
prices balance for the next three months rose to 11 in the August survey
from 5 in the July one.
“Prospects for the manufacturing sector remain very positive.
Demand is steadily improving, helped by the revival of export orders
after some weakness last month, and manufacturers expect slightly
stronger production growth in the three months ahead,” Lai Wah Co, CBI
head of economic analysis, said.
“However, inflationary pressures within the sector have not fully
faded, and firms are predicting a faster rise in output prices over the
next quarter,” she added.
The survey was conducted between July 23 and August 11, and
covered responses from 485 manufacturing firms.
–London bureau: 44 20 7862 7491; email: drobinson@marketnews.com
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