LONDON (AFX) - The fortunes of UK manufacturers appear to be bottoming out with optimism among manufacturers over export prospects for the next 12 months rising for the first time in one year, according to the Confederation of British Industry.
However, in its latest quarterly industrial trends survey, the CBI also reported that around 60 pct of responses to its survey came before the surprise 50 basis point inter meeting rate cut in the U.S.
The survey went on to show that confidence dipped very slightly while orders flattened out. Export orders, in particular, are expected to rise although there remains concerns over the outlook for the global economy. Profit margins continued to be squeezed, with investment intentions weak, and job losses continuing, it further revealed.
Investment considerations were hampered by a squeeze on profit margins along with uncertainty over demand.
According to Nick Reilly, head of the CBI's economic affairs committee, the survey contains mixed news for manufacturers.
"Both domestic and export orders are expected to rise, but investment intentions and employment prospects all remain depressingly weak." Results of the January quarterly industrial trends survey are shown below. Figures are expressed in percentage points and show the balance of positive responses less negative ones. The first set of results are published monthly while the second set are produced on a quarterly basis.
Jan Dec Nov Oct
Total order books above normal -10 -2 -17 -18
Export order books above normal -14 -21 -31 -28
Stocks "more than adequate" 9 11 11 10
Expecting higher output 14 12 1 3 Expecting to raise prices 4 -4 -13 -12 Jan Oct July April
Business optimism -3 -9 -10 -2
Investment in plant/machinery -9 -18 -21 -21
Firms with adequate capacity 87 91 93 92
Employment (past 4 months) -7 -4 -15 -17
Employment (next 4 months) -12 -8 -12 -13
Total orders (past 4 months) 4 -9 -8 -4
Total orders (next 4 months) 9 2 -9 2
Export optimism 7 -6 -18 -10
New export orders (past 4 months) -1 -11 -18 -8
New export orders (next 4 months) 6 -2 -15 -7