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August 2011 | Angeline Albert
than three quarters of manufacturers will lower or keep their output prices the
same over the next three months thanks to healthy demand.
to the CBI’s monthly Industrial Trends Survey for August, only 19 per cent of
the 510 manufacturers surveyed expected to raise prices during the coming
quarter, compared with 10 per cent who said they will lower prices and 71 per
cent will keep them the same.
producers said pressure on prices had lessened following strong inflation in
the first six months of 2011. During the survey period, Brent crude oil cost
$110.81 (£67.12) per barrel, lower than the $113.73 (£68.91) per barrel during
the corresponding period in July.
31 per cent of manufacturers predicted production would rise over the next
quarter, 52 per cent believe it will stay the same, and just 17 per cent
thought it would fall.
Woolhouse, CBI head of fiscal policy, said in a statement: “Manufacturing order
books are holding up, and expectations for output growth are above their
historical average. Inflationary pressures have eased since the start of the
year, with fewer firms predicting they will have to raise prices at the factory
gate over the coming quarter.”
the business organisation warned that concerns around growth in the US and the
Eurozone still threaten the sector’s recovery. “The risks to manufacturing
activity and business confidence have if anything increased, due to market
volatility and the recalibration of growth expectations worldwide,” said