Manufacturing firms expect growth in output

The latest Industrial Trends survey shows an improving trend in overall demand for UK-made goods and the need to replenish stocks has been accompanied by further expectations of growth in manufacturing output. In September's survey, 27 per cent predict output will rise, compared with 16 per cent expecting it will fall. The resulting rounded balance of +12 per cent is similar to expectations in August (+10 per cent), and an improvement on +6 per cent in July. This month's survey showed 20 per cent of manufacturers with total orders above normal and 37 per cent with them below. The resulting balance of -17 per cent is down slightly on last month (-14 per cent). But the figure is broadly in line with the survey's long-run average (-18 per cent). Export orders weakened slightly in September, with 23 per cent of companies saying they were above normal and 27 per cent below normal. The resulting rounded balance of -5 per cent is down a little on -1 per cent in August, but this figure is well above the long-run average (-22 per cent), and overseas demand is still considered to be much better than at the start of the year. However, price pressures in the manufacturing sector intensified for the second month running. A balance of +15 per cent of firms expects to raise prices in the next three months, following +11 per cent in the previous survey.