Monday, 3 September 2012

Output to fall by 1.5%

The latest quarterly survey of 369 manufacturing businesses by BDO and the EEF has found that manufacturing output is likely to shrink by 1.5% this year, a worsening of its previous 0.3% forecasted fall. The manufacturers revealed that their UK order books have turned negative for the first time in ten quarters.  Tom Lawton of BDO commented: “With this extremely testing global backdrop it is crucial that manufacturers remain not only lean but also nimble enough to respond to future opportunities as and when they arise. Larger companies that have the ability to invest are continuing to do so and smaller companies are wary of not suffering a skill shortage by ensuring that they employ the best talent."  Elsewhere, BDO has reported that the British success at the Olympics had little impact on high street sales. Last month’s like-for-like sales at mid-range retailers fell by 0.5% compared to the same period last year with fashion sales 1.3% lower and homewares down 8.7%. Meanwhile, the latest Lloyds Bank Wholesale Banking & Markets Business Barometer has shown that businesses are more optimistic about their own prospects as well as the economy’s.
Source: Financial Times,

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