CBI poll shows manufacturers' seven year confidence low
Aug 21 2008
British manufacturers are more pessimistic about their future output than they have been for the past seven years, the Industrial Trends Survey produced by the Confederation of British Industry (CBI) shows.
Around 20 per cent of the firms questioned expect their output to increase in the coming quarter while a third believe it will fall.
Coupled with this, the number of firms believing they are going to have to increase prices for their customers is still around the same level as the 18-year high recorded last month.
The body claims that cost pressures from food and other commodities are still impacting on firms' finances, despite the fall in oil prices.
Chief economic adviser for the CBI Ian McCafferty described manufacturers as downbeat.
He adds: 'Domestic conditions remain sluggish and the recent slowdown in the eurozone economies is starting to make conditions tougher for UK manufacturing exporters, although the weaker pound will offer some relief.'
The minutes of this month's monetary policy committee meeting suggest that members put more consideration into a possible rate cut - something which would help ailing businesses - because it predicts inflation will fall.
Around 20 per cent of the firms questioned expect their output to increase in the coming quarter while a third believe it will fall.
Coupled with this, the number of firms believing they are going to have to increase prices for their customers is still around the same level as the 18-year high recorded last month.
The body claims that cost pressures from food and other commodities are still impacting on firms' finances, despite the fall in oil prices.
Chief economic adviser for the CBI Ian McCafferty described manufacturers as downbeat.
He adds: 'Domestic conditions remain sluggish and the recent slowdown in the eurozone economies is starting to make conditions tougher for UK manufacturing exporters, although the weaker pound will offer some relief.'
The minutes of this month's monetary policy committee meeting suggest that members put more consideration into a possible rate cut - something which would help ailing businesses - because it predicts inflation will fall.
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