Menu
22/07/2003
Manufacturing stifled by 'relentless' downturn
The "relentless" downturn in UK manufacturing and continuing falls in orders, output and employment is crippling the industry, according to the latest CBI Quarterly Industrial Trends survey, published today.
The first quarterly survey after the war in Iraq – involving almost 900 companies – offers "little sign of improvement" since the end of the conflict, the CBI claim. The data shows that domestic orders have now fallen for over three years, export orders have fallen for nearly seven years and confidence is continuing to decline.
Domestic orders fell faster than expected over the last three months with 38% of firms reporting a fall, while 14% saw a rise. The balance of minus 24% compares with minus 23% in the April survey and minus 13% in the January survey.
At the same time, export orders fell at their fastest rate for 18 months. Thirty-nine per cent of firms recorded a fall in export orders, while 16% saw a rise. The balance of minus 23% compares with minus 21% in the April survey and is the fastest fall since January 2002.
As a result, total orders continued to fall sharply, after declining at the fastest rate for four years in the April survey. Firms do not see the decline in either domestic or export orders coming to an end over the next quarter, but do expect the pace of deterioration to ease slightly, the study concluded.
Ian McCafferty, CBI Chief Economic Adviser, said: "Manufacturers have enjoyed little relief in the three months following the end of conflict in Iraq and the downturn in orders appears relentless despite the recent softening of the pound.
"Manufacturers' main hope is that a pick-up in the United States later this year helps trigger a gradual recovery in the UK. The recent Bank of England move was timely but we may need more cuts in interest rates to support the economy at this challenging time."
Job shedding continued at a rapid pace over the past three months, but at a slightly slower rate than expected.
Only 16% of firms cite expansion of capacity as a reason to invest, the lowest figure since 1991. Uncertainty about demand remained the key investment constraint – cited by 62% of respondents. With the exception of the post-September 11th survey, this is the highest figure on record.
(GMcG)
The first quarterly survey after the war in Iraq – involving almost 900 companies – offers "little sign of improvement" since the end of the conflict, the CBI claim. The data shows that domestic orders have now fallen for over three years, export orders have fallen for nearly seven years and confidence is continuing to decline.
Domestic orders fell faster than expected over the last three months with 38% of firms reporting a fall, while 14% saw a rise. The balance of minus 24% compares with minus 23% in the April survey and minus 13% in the January survey.
At the same time, export orders fell at their fastest rate for 18 months. Thirty-nine per cent of firms recorded a fall in export orders, while 16% saw a rise. The balance of minus 23% compares with minus 21% in the April survey and is the fastest fall since January 2002.
As a result, total orders continued to fall sharply, after declining at the fastest rate for four years in the April survey. Firms do not see the decline in either domestic or export orders coming to an end over the next quarter, but do expect the pace of deterioration to ease slightly, the study concluded.
Ian McCafferty, CBI Chief Economic Adviser, said: "Manufacturers have enjoyed little relief in the three months following the end of conflict in Iraq and the downturn in orders appears relentless despite the recent softening of the pound.
"Manufacturers' main hope is that a pick-up in the United States later this year helps trigger a gradual recovery in the UK. The recent Bank of England move was timely but we may need more cuts in interest rates to support the economy at this challenging time."
Job shedding continued at a rapid pace over the past three months, but at a slightly slower rate than expected.
Only 16% of firms cite expansion of capacity as a reason to invest, the lowest figure since 1991. Uncertainty about demand remained the key investment constraint – cited by 62% of respondents. With the exception of the post-September 11th survey, this is the highest figure on record.
(GMcG)
Related UK National News Stories
Click here for the latest headlines.
28 April 2003
CBI issues call for interest rate cut
The CBI has called for a cut in interest rates on the back of a report, published today, indicating a dramatic fall in manufacturing orders. In its Quarterly Industrial Trends survey, the CBI say it is "particularly worrying" that, with a deterioration in domestic demand, orders have fallen at the fastest rate since April 1999.
CBI issues call for interest rate cut
The CBI has called for a cut in interest rates on the back of a report, published today, indicating a dramatic fall in manufacturing orders. In its Quarterly Industrial Trends survey, the CBI say it is "particularly worrying" that, with a deterioration in domestic demand, orders have fallen at the fastest rate since April 1999.
18 February 2015
UK Unemployment Falls
New figures from the Office for National Statistics (ONS) show that unemployment in the UK now stands at 5.7%, having fallen by 97,000 in the three months to December. This means the number of adults now in work stands at 73.2%. The figures also show an increase in average earnings with bonuses, up 2.1% compared to a year earlier.
UK Unemployment Falls
New figures from the Office for National Statistics (ONS) show that unemployment in the UK now stands at 5.7%, having fallen by 97,000 in the three months to December. This means the number of adults now in work stands at 73.2%. The figures also show an increase in average earnings with bonuses, up 2.1% compared to a year earlier.
16 February 2004
SMEs gain confidence as orders decline ends, says CBI
Smaller manufacturers have begun to benefit from the economic recovery, with confidence rising for the first time in almost two years and the three-year decline in orders and output coming to an end, the Confederation of British Industry (CBI) has said.
SMEs gain confidence as orders decline ends, says CBI
Smaller manufacturers have begun to benefit from the economic recovery, with confidence rising for the first time in almost two years and the three-year decline in orders and output coming to an end, the Confederation of British Industry (CBI) has said.
18 March 2015
UK Unemployment Rate Falls
The UK's unemployment rate has fallen to 1.86 million, new official figures have revealed. In the three months to January, the number of those out of work fell by 102,000. The Office for National Statistics (ONS) added that the unemployment rate remains at 5.7%, but the number of people in work increased to a record high in the quarter.
UK Unemployment Rate Falls
The UK's unemployment rate has fallen to 1.86 million, new official figures have revealed. In the three months to January, the number of those out of work fell by 102,000. The Office for National Statistics (ONS) added that the unemployment rate remains at 5.7%, but the number of people in work increased to a record high in the quarter.
26 June 2015
UK Population Grows By Almost Half A Million - ONS
New figures from the Office for National Statistics(ONS) have revealed that the population of the UK grew to a total of 64,596,800, up by almost half a million. The ONS said the population rose by 491,100 from mid-2013 to mid-2014, a growth it described as "above average". Net migration of 259,700 added to the population growth, the ONS said.
UK Population Grows By Almost Half A Million - ONS
New figures from the Office for National Statistics(ONS) have revealed that the population of the UK grew to a total of 64,596,800, up by almost half a million. The ONS said the population rose by 491,100 from mid-2013 to mid-2014, a growth it described as "above average". Net migration of 259,700 added to the population growth, the ONS said.
-
Northern Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
