By Ilona Billington And Alex Brittain
LONDON--U.K. manufacturers expect to hold output levels steady over
the coming three months as new orders sank to the lowest balance in
2012, reflecting a steep drop in overseas demand, the Confederation of
British Industry said Tuesday.
The industrial output balance was 0 in August compared with +11 in the
July survey. The balance is calculated by subtracting the proportion
of manufacturers expecting a drop in output from the proportion
expecting an increase.
Total new orders slumped to a balance of -21 in August. That was the
lowest balance since -23 in December 2011 and compares with -6 in
July. Export orders, meanwhile, also slipped to a balance of -17 in
August from July's -9.
"Overall demand for manufactured goods has eased this month, led by a
weakening in the consumer goods sector following a strong July
figure," said Anna Leach, head of economic analysis for the CBI.
"The economic environment for U.K. manufacturers remains challenging,
with domestic demand relatively muted and the ongoing euro-zone crisis
now seeming to drag on broader global economic momentum," Ms. Leach
said.
The CBI survey follows the steep contraction in the July manufacturing
purchasing managers index to 45.4 from 48.4 in June and suggests
output in the third quarter of the year got off to a disappointing
start.
Other details of the CBI survey were also downbeat. Manufacturers are
planning to increase the prices they charge for goods in September,
after expectations to cut prices in August. Stock levels, meanwhile,
were a little lower at a balance of +9 in August from +14 in July.
The survey was carried out between July 25 and August 15. A total of
456 manufacturers responded.
Website: http://www.cbi.org.uk
Write to Ilona Billington at ilona.billington@dowjones.com
(END) Dow Jones Newswires
August 21, 2012 06:17 ET (10:17 GMT)
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