Output expectations still weak: CBI

The survey published by the CBI and based on the sentiments of its members suggests order book levels are little changed from the depressed position of November, and perceptions of overseas orders remain weak. For the second month running, output prices are not expected to rise, while larger firms are now planning to reduce their prices. Order book levels remain below par. While 17% of firms say their total book is above normal, 52% say it is below normal. Export orders also remain weak. While 12% of manufacturers report above normal export order volumes, 45% say they are below normal. Stock levels are still much higher than their historical average, but have come down a little since November. Expectations for output remain weak with 14% of firms believing output will rise in the next quarter and 56% saying it will fall. The CBI’s chief economic adviser Ian McCafferty (pictured) said: "Figures for manufacturing continue to make depressing reading, with output still expected to fall rapidly in the coming months. It is worrying that, despite the 20% depreciation in sterling over the past year, export orders remain so weak. Our export competitiveness is increasing but many of our key export markets are contracting rapidly."