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(CEP News) Frankfurt - Manufacturers output expectations fell to their lowest level in almost 30 years, with the Confederation of British Industry reporting Wednesday that domestic and foreign order levels for UK manufacturing are continuing to suffer during the economic slowdown.
According to the CBI industrial trends survey for November, 14% of manufacturers expect output to rise over the next three months, while 56% expect it to decline. "The resulting balance of -42% is the lowest since September 1980 (-48%)," the survey said. "The outlook for manufacturers has deteriorated considerably since the banking crisis took a turn for the worse in October," CBI chief economic adviser Ian McCafferty said. "Expectations for output are now the gloomiest in 28 years, while firms' order books remain weak." McCafferty added that with the likelihood of a sharp and prolonged recession in the UK, conditions for manufacturing could remain difficult for some time. "A slowing global economy, particularly in the euro zone, makes the immediate benefits of a weak pound fairly muted for exporters," McCafferty said. "But the weakening in factory gate prices will feed through to declining inflation in coming months, giving the Bank of England room for further significant rate cuts." By Todd Wailoo,
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