Manufacturers orders holding up - CBI
While manufacturers saw a modest improvement in their order books in June, the rise in prices of manufactured goods will continue almost unabated over the next three months, the CBI warned last month.
Firms rated their total orders as ‘normal’ for June, which is a slight improvement on the previous two months but not as good as it was at the turn of the year. Coming after two years of healthier demand, however, this month's figure looks lacklustre.
Thirty-one per cent of firms in the CBI’s June Industrial Trends Survey reported order books as ‘above normal’ and 30% said they were ‘below normal’, giving a balance of +1%. Exporters’ order book levels have also improved since May (a balance of -5% compared with -12% in the previous two months).
SMMT remains optimistic
“May saw a slow down in UK car production, reflecting a cautious approach to demand across Western Europe. Year-to-date volumes remain positive and are up 66,332 units over the same period in 2007,” says Paul Everitt, SMMT chief executive. “The outlook for UK automotive manufacturing remains optimistic with strong demand in many emerging markets.
Commercial vehicle output continued its upward trend in May, with the main growth in exports. Year-to-date, production was up 10% compared to 2007 and the 12 month rolling total is at 224,813 units.”