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Manufacturing industry news
News Release from: CBI
Edited by the Manufacturingtalk Editorial
Team on 21 February 2008
UK manufacturers activity strongest
since 1995
Reporting that product demand from UK manufacturers is at its strongest level since 1995, the UK's Confederation of British Industry (CBI) said that there are signs emerging of a growth slow-down.
The UK's Confederation of British Industry (CBI) recent survey said that manufacturers are enjoying the longest run of sustained demand for 12 years and are 'bucking' the slowdown in other parts of the economy However, the CBI said that firms expect to continue the recent trend of marked price rises over the coming months
This article was originally published on Manufacturingtalk on 6 Jan 2004 at 8.00am (UK)
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In the monthly Industrial Trends Survey, published on February 20, 2008, a balance of 3% of firms said their total orders books were 'above normal'.
The CBI said that it was the tenth time in 12 months that firms had said order books were so healthy, the strongest showing since 1995.
* Capital goods demand - the trend has largely been driven by demand for capital goods, with orders books in this sector at levels seen only once before (August 2007) in the 20 years the data has been available.
However export demand eased this month with a balance of 8% of firms saying orders were 'below normal'.
As a result of this, CBI said that firms expect their output to grow over the coming three months (a balance of 11%) although at rates slightly lower than seen in the first half of 2007.
* Domestic prices to rise - a balance of 22% of firms told the CBI that they expect their domestic prices to go up over the next three months, particularly among food and metal products manufacturers.
Ian McCafferty, CBI chief economic adviser, said: "It is encouraging to see that the slowdown already in train in some sectors of the economy has not yet hit manufacturers.
While manufacturing is not going to be immune to weaker demand at home and abroad, the recent depreciation in sterling will be a helpful boost for exporters over coming months".
He added: "A resilient, export-orientated manufacturing sector is exactly what we need as we enter a tricky period of rebalancing the economy away from its dependence on domestic demand.".
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