Order books emptying at record rate as world waits

first_imgOrder books emptying at record rate as world waitsOn 6 May 2003 in Personnel Today Previous Article Next Article Related posts:No related photos. Manufacturing employers report that orders are falling at their fastest ratefor four years, research by the CBI reveals. Its Quarterly Industrial Trends survey, published last week, finds thelatest decline in orders has been driven by a sharp deterioration in domesticdemand. Thirty-seven per cent of firms reported a fall, against 16 per cent whichsaw a rise. The difference between the two gives a balance of minus 21 per cent,compared with minus 9 per cent in the January survey. Total orders are expectedto continue falling sharply over the coming months. This suggests the weakness in global trading conditions that caused themanufacturing recession is spreading to the home market, where orders are nowfalling at their fastest rate since April 1999. The survey also shows a decline in manufacturers’ confidence, which canprobably be attributed in part to the war in Iraq – but this is the thirdconsecutive survey to register a fall. CBI director-general Digby Jones called for a cut in interest rates tostimulate demand. “The end of the Iraq conflict will steady nerves,” he said,”but the world’s economic problems were there before the war and they arestill there now. Manufacturers hoped domestic demand would hold up until therewas a pick-up in global trade, but that does not seem to be happening. We arenot predicting a recession, however.” www.cbi.co.uk Comments are closed. last_img read more