Friday 23 November 2012
Output in the manufacturing sector is expected to fall over the next three months, the Confederation of British Industry (CBI) has reported.
Research conducted by the lobby group found that just 19 per cent of firms expect to increase the volume of output over the next quarter.
Another 28 per cent think output will fall in the next three months, giving a balance of -9 per cent - the lowest prediction this year.
The anticipated fall is broad-based, the CBI said, with only motor vehicles and the transport equipment sub-sector expecting to increase output.
Stock levels remained stable after last month's sharp fall at +5 per cent.
Anna Leach, CBI head of economic analysis, said overseas demand has improved, but this has not been enough to lift overall UK demand.
She said the figures support the modest expectations for growth in production levels highlighted in the previous survey.
“Business confidence continues to be undermined by uncertainty over events in Europe and the fast approaching US fiscal cliff," Ms Leach stated.
"However, we expect UK growth to pick-up somewhat in 2013 as this uncertainty gradually subsides and global growth increases."
Posted by Dan Smith