Orders Rebound But Manufacturers Predict a Flat Start to 2013

  Enquire / contact me

Industrial trends survey of the year for UK manufacturers

Anna Leach, CBI Head of Economic Analysis
Anna Leach, CBI Head of Economic Analysis

In the CBI's final Industrial Trends Survey of the year, UK manufacturers reported an increase in their total order books for the third month running but remained cautious in their expectations for output at the start of the new year.
Of the 392 manufacturers responding to the latest monthly survey, 18% reported that total order books were above normal and 30% that they were below. The resulting balance of -12% is 9 points higher than November (-21%) and a little higher than the long-run average (-17%) for the first time since September (-8%).
The balance of manufacturers reporting that export orders were above normal was -11%, also above the long-run average (-21%). This meant that last month's rebound held (-12%) but there was no further improvement in export order books.
Looking ahead manufacturers expect output to be flat for the next three months (0%), an improvement on last month (-9%) but still below the robust growth that was anticipated back in October (12%). Investment goods sectors - especially mechanical engineering and aerospace - are the main drivers of growth, but half of the twelve main manufacturing sub-sectors expect output to fall, including chemicals and electrical engineering.
Meanwhile expectations of output price inflation over the next three months picked by 9 points to 17%, with all but two of the eleven manufacturing sectors reporting an increase. This is the highest anticipated rate of inflation since March (24%). The food, drink & tobacco sector is the largest driver of the increased inflation expectations by some distance.
With prospects for output weak, firms have kept the level of stocks low for the third-consecutive quarter (6%), well below the long run average (14%).
Anna Leach, CBI Head of Economic Analysis, said: "December's survey reports a welcome improvement in manufacturers' order books and their expectations for output. Even so, they remain hesitant in predicting further output growth and are keeping stock levels low. Conditions in the sector and the wider economy are likely to remain fragile until global conditions improve over the course of 2013."

Posted on December 14, 2012 - (291 views)
by
Related articles
Ultracapacitor System for Rapid Response Power
Medical Grade PC
High Speed and High Definition Camera
Radar Sensors R&D Gets on a Flexible Track
UCB Life Scientists Use Robots to Test Cells by the Billion
Linear Transfer System with Smart Carriage Technology
Melfa FR Robot Series
Widescreen HMIs GT21 and GT25
Ready to Race
Turning Vision into Reality
The Internet of Things Starts with a Sensor
Fan Filters FF Series
Handheld Optical Gas Imaging Camera GFx320
Technopolymer Transmission Elements
NS Series Safety Switches
Modbus TCP EtherCAT PROFINET
Level Switches RFS-12 and RFS-9
Multi-protocol Network Diagnostics
EMC Filter FN 3287 and FN 3288
LED Indicators
Medical Grade PC
High Speed and High Definition Camera
Multi-function Sensor Module
Drive for Marine Installations
AC/DC Desktop Power Adapters
Monitoring Fugitive Emissions & Leaks
Integrated Drive for Induction Motors
Energy-saving Synchronous Motors
Compact CPU Board
Power Management System for IIoT
Cloud Kit for IoT Sensor Devices
Gasketed Plate Heat Exchangers
Verigo Model PB3 Reusable Temperature Data Logger
Ultrasonic Flowmeter for Laboratory
Co-Creating the Industry of the Future
Ultra-Low Power Accelerometer for IoT
New JD Mini for Maximum Efficiency
Bonfiglioli BSR Synchronous Reluctance Motors
Reflowable Thermal Switch
Measuring the Position of Hydraulic and Telescopic Cylinders