Manufacturers making modest recovery says CBI
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The UK manufacturing sector is showing signs of bouncing back from the fragile conditions seen at the end of 2011 and start of 2012, and sentiment has improved for the first time in a year, the CBI has said.
The latest CBI quarterly Industrial Trends Survey shows modest increases in orders and output volumes during the three months to April, and momentum is expected to build further in the coming three months.
Thirty-five per cent of manufacturers responding to the survey said that total orders rose, while 26% said that they fell. The resulting rounded balance of +8% shows that total orders increased modestly in the three months to April, returning to growth rates similar to those seen in the second half of 2011.
Output also showed modest growth in the quarter to April, with a balance of +5%. Looking ahead to the coming three months, manufacturers expect both output growth (+24%) and total orders growth (+24%) to strengthen further.
CBI chief economic adviser Ian McCafferty said that with acute fears over Europe and global demand subsiding since the start of 2012, sentiment about the general business situation had risen among manufacturers for the first time in a year.
"Firms have seen manufacturing demand and production picking up in the three months to April, and with expectations of a further strengthening in activity in the coming quarter, they're increasing their stock-building and investment plans.
"Nevertheless, given Europe is still our biggest export market, the outlook for UK manufacturing will remain uncertain until the Eurozone crisis is resolved."
