–UK CBI Monthly Trends: May Total Orders -18 vs -36 in Apr
–UK CBI: May Output Volume +17 vs +14 in Apr
–UK CBI: May Average Prices +14 vs +16 in Apr
–UK CBI: May Export Orders +3 vs -16 in Apr
LONDON (MNI) – Foreign demand for UK manufactured goods
strengthened in May, the CBI said, with export orders above par for the
first time in two years.
The CBI, however, said overall demand is still lagging. A net
balance of 3% of manufacturers said export orders are no longer sub-par,
a significant improvement on April’s -16 and the first positive result
since March 2008 (when it was 3%).
The CBI noted that total orders were not so robust, as a result of
a weaker recovery in domestic demand. A net balance of 18% of firms said
orders were below normal, well up on the 36% balance saying this in
April. The CBI said the total orders balance was in line with the long
run average.
With demand improving the CBI said manufacturers expect output to
rise strongly with a net 17% expecting production to rise in the next
three months, stronger than April’s 14%.
Inflationary pressure remain strong and manufacturers expect to
raise prices over the next 3 months. A balance of 14% expect prices to
rise over the next 3 months compared with 16% in April.
Ian McCafferty, the CBI’s Chief Economic Adviser, said “the weak
pound has made UK exports more attractive, and manufacturers are
benefiting from the pick-up in world trade.”
“Firms also expect to raise prices again over the coming three
months because of higher energy prices and import prices,” he said.
Stocks balances held at a similar level to April, with a net 10% of
respondents saying they were more than adequate to meet demand.
The survey was conducted between April 26 and March 12.
–London bureau: 44 20 7862 7941; email: dthomas@marketnews.com
[TOPICS: M$B$$$,M$BDS$,MT$$$$,MABDS$]
