21 March 2002, 14:27  UK CBI says manufacturing over the worst but recovery will be slow

LONDON (AFX) - The manufacturing sector is over the worst but recovery will be slow, according to the Confederation of British Industry. In its latest monthly industrial trends survey, the CBI found that output is expected to stabilise over the coming months though order books remain weak. Output expectations for the next four months are stable with 26 pct of manufacturers expecting an increase and 24 pct expecting a fall. Last month's balance was +1, the first positive result since July 2001. Total order books showed little sign of improvement over the last six months, with 14 pct of manufacturers indicating that orders were above normal, and 46 pct saying they were below. The balance of -32 compares with -29 in February and -31 in January. Export orders picked up from their low point at the end of last year. The balance of -39 compares with -40 in February and -42 in January. The CBI said the improvement in export orders is offset by a minor weakening in domestic orders. Ian McCafferty, the CBI's chief economic adviser said there is some encouragement in this survey but manufacturers are still finding life difficult. "The beginnings of a global turnaround have led to a slight pick-up in export orders, a welcome revival after the three-year low reported in November," he said. "Overall, while we are probably now past the worst, the recovery in manufacturing is still likely to be only gradual."

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