Optimism over output growth says CBI

Of the 459 manufacturers responding to the latest monthly Industrial Trends Survey, 27% expect to increase their volume of output over the course of the next three months, while 19% expect it to fall. The balance of +7% marks an improvement on the negative figure recorded in May (-3%), though still below those seen in the early months of the year. The flow of orders saw an improvement in June, with 17% reporting that order books were above normal. With 28% stating that order levels were below normal, the balance of -11% represents an upturn from last month (-17%) and is above the long-run average (-17%). Likewise, export orders also strengthened with a balance of - 4%, well above the long-run average of -21%. CBI chief economic adviser Ian McCafferty (pictured) said: "Despite facing continued instability within the Eurozone, UK manufacturers have seen a modest re-bound in orders from both their domestic and export markets. As a result, firms are expecting output to pick up over the next quarter, although the pace of growth is still expected to be somewhat lower than earlier in the year."