–Adds Detail To Version Transmitted At 1000 GMT
–UK CBI Monthly Trends: Jul Total Orders -10% vs 1% in Jun
–UK CBI: Jul Expected Output Volumes +6% vs +13% in Jun
–UK CBI Ind. Trends: Jul Average Output Prices +4% vs +27% Jun
–UK CBI: Jul Quarterly Business Optimism -16% vs +9% Apr
–UK CBI Jul Quarterly Volume of Expected Output +6% vs +22% Apr

LONDON (MNI) – The manufacturing sector saw optimism fall sharply,
orders balances decrease and price pressures ease, according to the
latest Confederation of British Industry monthly and quarterly surveys
for July.

Orders, price balance and optimism all fell to multi-year lows,
with the CBI surveys showing a marked deterioration in the business
outlook for the manufacturing sector.

The quarterly expected orders balance dropped to zero from 15 in
the previous quarter, hitting its lowest level since July 2009.

Average expected domestic prices, a measure of price expectations
for the next three months, slumped to 4 from 36 in the previous quarter,
the lowest reading since October 2009.

The number of firms working below capacity fell to 50%, the lowest
level since July 2007.

The quarterly optimism balance for July fell to -16 from 9, the
worst outturn since July 2009.

The quarterly orders balance remained in positive territory, but
showed a marked slowing in comparison to the previous quarter. Total
quarterly new orders stood at 8, down from 20 in April, with domestic
orders down to 3 from 15.

The monthly data showed the July total orders balance falling into
negative territory, dropping to -10 from 1 in June.

“Orders and output growth in the manufacturing sector slowed
slightly over the past quarter. This is in line with a broader slowing
in production globally, with supply chains around the world impacted by
the Japanese tsunami earlier this year,” Ian McCafferty, CBI Chief
Economic Adviser, said.

“This slowdown is expected to persist into the third quarter.
Consequently, manufacturers are now reappraising their business plans,
with firms expecting to lower recruitment in the coming quarter and
invest less in the year ahead. How far the slowdown will be borne out is
yet unclear, but the combination of political and economic uncertainty
is sapping confidence,” he added.

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

[TOPICS: M$B$$$,MT$$$$,MABDS$]