Wednesday, October 26, 2011
Manufacturers gloomiest since the recession
Posted by David Smith at 11:15 AM
Category: Thoughts and responses

The run of mildly encouraging surveys appears to have stopped if the CBI's latest industrial trends survey is anything to go by. It says:

"Sentiment has deteriorated sharply among UK manufacturers, in anticipation of significant falls in activity over the next three months, the CBI said today.

"Manufacturing orders and output are expected to fall over the next quarter, following modest rises in domestic demand and production over the past three months. Firms are also predicting a run-down of their stock holdings.

"Sentiment about both the general business situation and export prospects fell for the second consecutive quarter, with net balances of -30% and -24% of firms reporting that they were less optimistic than three months ago. The falls in sentiment were the sharpest since April 2009."

Export balances are above their long-run averages, in spite of the eurozone crisis, but companies are being held back by the lack of availability of export credit. More here.