–Adds Detail To Version Transmitted At 1013 GMT

–UK CBI: Oct Quarterly Business Optimism -30% Vs -16% Jul
–UK CBI: Oct Quarterly Volume Of Expected Output -11% Vs +6% Jul
–UK CBI: Oct Total Orders -18 Vs -9 In Sep
–UK CBI: Oct Output Volume -11 Vs +9 In Sep
–UK CBI: Oct Average Prices +1 Vs +13 In Sep

LONDON (MNI) – UK manufacturing optimism and expected output fell
sharply, according to the Confederation of British Industry’s October
monthly and quarterly surveys.

The data showed the impact of the euro zone crisis, with export
credit recording its tightest reading since back in 1968 and the
quarterly export orders balance plunging.

Ian McCafferty, the CBI’s chief economic adviser, said
“Manufacturers saw modest growth in orders and production over the past
quarter.”

“However sentiment has deteriorated sharply and firms expect
sizeable falls in activity over the next 3 months. The quarterly fall in
sentiment is the largest since the height of the recession in mid-2009,”
he added.

The quarterly business optimism reading fell to -30 from -16 in
July, its lowest reading since April 2009. In the monthly survey
expected output fell to -11 from 9 in September, its lowest reading
since July 2009.

The quarterly optimism on export balances plummeted to -24 from
July’s -4.

October’s monthly total order books reading fell to -18 from -9 in
September, and inflation pressures eased markedly, with the average
expected prices balance falling to 1 from 13 in September, the lowest
reading since December 2009.

The October quarterly order books balance fell to -18 from -10 in
July, its lowest reading since October last year.

The expected volume of new orders in the next three months in the
quarterly survey fell to -10 from July’s zero balance, again its lowest
outturn since last October.

The only point of stability in the surveys was manufacturers’
stocks’ levels. The stocks reading was unchanged at 21 in October in the
monthly survey, suggesting they have more than enough stocks to meet
the expected falling demand.

–London bureau: 44 20 7862 7941; email: drobinson@marketnews.com

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