Manufacturing boost for economy
Thursday 20 September 2012
Hopes that the economy has emerged from the double-dip recession were boosted today as a survey showed an improvement in the outlook for manufacturers.
A balance of 7% of manufacturers surveyed by the CBI this month expect to increase their volume of output in the next three months, compared to a flat balance in August.
Fewer manufacturers reported order books below normal levels in September, the CBI said, while export orders showed some recovery as well.
The economy shrank by 0.5% between April and June, marking the third consecutive quarter of declining output and the longest double-dip recession since the 1950s.
Howard Archer, chief UK and European economist at IHS Global Insight, said: "The September survey lifts hopes that the manufacturing sector saw robust overall expansion in the third quarter, thereby making a significant contribution to GDP growth."
Anna Leach, CBI head of economic analysis, said: "Domestic and overseas demand have improved in this survey following last month's falls, providing a foundation for somewhat better output growth expectations.
"Manufacturers believe that there will be a modest rise in output over the coming months, driven largely by the chemicals and food and drink sectors.
"But uncertainty is expected to build through the autumn ... meaning that conditions are likely to remain difficult for UK manufacturers."
There were further troubling signs for the inflation outlook in the CBI survey as firms in the consumer goods sector expected to raise prices in the coming quarter.
However, most other firms' expectations for factory gate prices remained subdued.
Samuel Tombs, UK economist at Capital Economics, warned that the improved survey did not necessarily signal a sustained recovery for manufacturers.
He said: "We are reluctant to conclude at this early stage that the worst is now over for the manufacturing sector."
International Women's Day 2014: The shocking statistics that show why it is still so important
Feminist quotes to inspire you on the International Women's Day
Oscar Pistorius trial first week: Never mind a media scrum – murder case becomes bizarre safari following the tracks of a wounded lion
International Women's Day 2014: Mothers and daughters around the world describe hopes and dreams in touching photographs
International Women’s Day: 'When a man gives his opinion, he's a man. When a woman gives her opinion, she's a bitch' - feminist quotes from female icons to inspire you
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 To those who can’t see the point of International Women’s Day: you are the very reason it exists
- 2 International Women's Day 2014: The shocking statistics that show why it is still so important
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Too upsetting? Academy members voted for Oscar-winning 12 Years A Slave 'without watching it'
- 5 Liam Neeson turned down James Bond role because late wife Natasha Richardson said she wouldn't marry him if he took it
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...