Manufacturing gloom deepens

Published on Wednesday 19 November 2008 20:49

MANUFACTURERS' output expectations are the weakest for nearly 30 years as the global slowdown continues to take its toll on industry, according to figures published yesterday.

The latest CBI Industrial Trends survey also indicated that prices are no longer expected to rise, a sharp reversal from just four months ago when price intentions were the highest for 18 years.

A balance of 42 per cent of the 530 firms surveyed said they expect their volume of output to fall in the coming three months, the weakest outlook since September 1980.

CBI chief economic adviser Ian McCafferty said: "The outlook for manufacturers has deteriorated considerably since the banking crisis took a turn for the worse in October. Expectations for output are now the gloomiest in 28 years, while firms' order books remain weak."

A balance of 38 per cent of firms reported order book levels below normal.

Last month's figure – a balance of 39 per cent – was the lowest since October 2003.

Export order books also reflected the overall slowdown as a balance of 31 per cent of manufacturers said volumes were expected to fall.

The survey showed inventories are at their highest level since December 2001, with a balance of 25 per cent of firms saying present stock levels are more than adequate to meet demand.