Feeds

Manufacturers notch up weakest output since 1980

Too much supply, not enough demand says CBI

The essential guide to IT transformation

UK manufacturers expect to slash factory output in the coming months as orders for March fell at their sharpest rate in 17 years.

Business group the Confederation of British Industry issued a dire forecast today in which it said that output levels were likely to mark the weakest demand for UK manufactured goods since the last recession in January 1992.

The CBI published results of its latest monthly “Industrial Trends” survey this morning.

When the 558 manufacturers that completed the survey were asked about expectations for output volumes over the next quarter, the response equalled a record low of 48 per cent. The last time the manufacturing industry expected output to drop by that amount was back in September 2008, said the CBI.

Companies expect to cut output sharply over the next three months with expectations of a manufacturing decline rising to 48 per cent from 44 per cent in February.

It said 58 per cent of respondents confirmed their total order book balance in March was below normal levels, down slightly compared to 56 per cent in the previous month.

However, the CBI said that while price falls were expected to hit the capital and intermediate goods sectors, it forecast consumer goods vendors would hold their prices over the next three months.

"The past six months have proved especially tough for many UK manufacturers, who have been hit by plunging domestic and global demand,” said the CBI’s chief economic adviser Ian McCafferty.

"Although firms have cut output aggressively in response to the recession, stock levels are still too high relative to expected demand.

"Manufacturers will take further action to reduce their stocks, leading to further sharp falls in output over the coming quarter." ®

Next gen security for virtualised datacentres

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?