London, MNI – UK manufacturing sentiment deteriorated over the past
three months, with stagnant output and weak demand, the CBI said today.
The outlook for the next three months is more upbeat however,
suggesting manufacturing could make a more positive contribution as the
first progresses. The CBI noted manufacturers expected to see slight
rises in export orders and ouput over the next three months.
The survey showed ouptut weakened sharply in the three months
through January with a balance of 2 on the quarterly survey, down from
+10 in the October survey and the lowest balance since April 2010.
Manufacturers expect output to rise next 3 months with a balance of
15% compared with -11% in October.
The CBI noted that the lowest sharp swing in the quaterly output
number was due to volatility in chemical sector production. Excluding
chemicals the downturn in output was less marked but broader conditions
in the manufacturing sector remained fragile, the CBI said.
The quarterly also showed domestic and export orders falling for
the first time in two years.
The survey was conducted between Dec 15 and Dec 11
“It is clear from this survey that conditions in UK manufacturing
remain fragile,” Ian McCafferty, the CBI’s chief economic adviser said.
“While the acute fears seen at the end of last year over global
demanding may be subsiding, 2012 proved to be a difficult year for UK
manufacturing as the crisis in the Eurozone, our biggest export market,
has yet to reach any definitive resolution,” he added.
— London newsroom: 207 862 4791; e-mail: ukeditorial@marketnews.com
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