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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