The UK’s recession-hit manufacturing sector continues to suffer, with domestic and export orders remaining significantly below normal, a survey said today.
The CBI’s monthly survey, conducted between 22 November and 10 December, showed continued gloom in the sector, with 55% of manufacturers reporting export order books below normal while just 12% were above.
The figures give a balance of minus 43% – not as weak as November’s balance of minus 50%, but similar to figures recorded in September and October.
The balance is the difference between firms reporting reductions in orders and those reporting increases.
The CBI said 1,030 firms responded to its survey.
Total order books are significantly below normal, and to a similar extent as reported in the three previous monthly surveys.
Stocks of finished goods have risen to their highest level since November 1998, leading to output expectations being the most negative in a monthly survey since October 1998.
Ian McCafferty, CBI chief economic adviser, said: “Today’s survey illustrates the length and depth of the recession in manufacturing.”
“The outlook remains heavily influenced by the current global weakness and the UK manufacturing sector is not expected to recover until the latter half of 2002.”
The survey again highlights the difference in fortunes between two sides of the UK’s economy.
While manufacturers have been struggling, retail sales have continued to boom – and official figures today showed again how robust consumer confidence is in the UK.
Ross Walker, UK economist at Royal Bank of Scotland said: “The interest rate cuts by the Bank of England have clearly fuelled a consumer spending spree without providing much succour to the beleaguered manufacturing sector.
“Stock levels are at their highest for over three years and running well ahead of their long run average, suggesting production will continue to exhibit chronic weakness for some time yet.”
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