Tuesday, August 23, 2011
CBI more upbeat on manufacturing
Posted by David Smith at 11:30 AM
Category: Thoughts and responses

Was the manufacturing upturn a flash in the pan, or did it just hit a temporary soft patch? The latest CBI industrial trends survey offers some encouragement for the latter view. These are the highlights:

"Of the 510 manufacturers responding to the CBIís August monthly Industrial Trends Survey, 29% of firms described total orders as above normal, and 29% said they were below. The resulting rounded balance of +1% shows order books remain well above the long-term average of -18%, and is an improvement on the previous monthís balance of -10%.

"While 24% of firms said export order books were above normal, an equal 24% said they were below. The resulting balance of 0% compares with -8% in July, and is also significantly above the long-term average (-21%).

"Expectations for growth in factory output over the coming quarter have picked up a little. 31% of firms predict that production will rise in the next three months, and 17% anticipate that it will fall. While the resulting rounded balance of +13% remains above the long-term average (+6%), it represents a continuation of the broader trend of moderating expectations since April."