Melioration for UK manufacturing

Momentum in the

manufacturing sector faded over the past three months as overseas demand levelled out and the decline in domestic orders accelerated, according to the latest industrial trends survey from the

published today.

Consequently total orders fell slightly, confounding expectations of continued growth, and order book levels are seen as marginally below normal. Output growth, which in July had been expected to maintain the strong performance of the first half of the year, slowed considerably.

While manufacturers expect a modest improvement in orders and output in the coming three months they are scaling back their expectations compared to earlier in the year. As a result they are slightly more pessimistic about the general business situation than three months ago.

Of the 551 firms which responded to the survey, 26 per cent reported the volume of total new orders was down in the three months to October compared to the previous quarter and 21 per cent registered a rise, a balance of minus five. The domestic order balance was minus 11, and exports were minus one.