CBI survey shows robust order books and output growth confidence

Meanwhile, pricing pressures have eased following strong inflation during the first two quarters of this year, the CBI said. Nearly 30% of firms rated total orders as above normal in the CBI's August monthly Industrial Trends Survey. A further 29% said orders were below average. The resulting rounded balance of +1% shows order books remain well above the long-term average of -18%, the CBI reported. Export orders also showed an improvement according to CBI data. While 24% of firms said export order books were above normal, an equal 24% said they were below. The resulting balance of 0% compares with -8% in July, and is also significantly above the long-term average of -21%, the CBI said. Expectations for growth in factory output increased to a rounded balance of +13%. The figure remains above the long-term average of +6% the CBI stated. Pricing pressures have eased in comparison with the first half of 201, the organization added. Nearly 20% of manufacturers predict that they will raise output prices over the coming quarter, and 10% expect to lower prices. The resulting balance of +9% is considerably lower than the much stronger expectations seen in the months prior to July, the CBI said. Richard Woolhouse, CBI Head of Fiscal Policy, said: "Manufacturing order books are holding up, and expectations for output growth are above their historical average, although they are less strong than earlier this year." Woolhouse added: "But the risks to manufacturing activity and business confidence have if anything increased, due to market volatility and the recalibration of growth expectations worldwide. Concerns around growth in the US and the Euro area present further challenges to the manufacturing recovery."