Outlook for manufacturing 'improving'
May 21 2009
The outlook for the manufacturing industry has improved, with many firms in the sector expecting the pace of decline to slow in the next three months, according to the latest Confederation of British Industry (CBI) survey.
In the monthly industrial trends report by the organisation, UK manufacturers suggested the worst of the recession may be behind them.
Of the 575 firms questioned, 17 per cent said they expected the volume of output to rise in the months to the end of August, while 34 per cent predicted a fall.
The balance of -17 per cent is the same as before the collapse of the Lehman Brothers in September and is lower than last month's figure of -32 per cent.
Ian McCafferty, chief economic adviser at the CBI, says manufacturers can see 'a glimmer of light at the end of the tunnel'.
He adds: 'They still expect manufacturing activity to fall, but at a much slower rate over the next few months.'
However, the expert states May was another tough month for firms, so many will still be running down stocks.
Last month's survey saw demand reduce at the fastest rate in 30 years, although manufacturers expected the next three months to improve.
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