FXstreet.com (Barcelona) - Industrial new orders remain in weak levels in May, with most of the producers reporting sales below normal, while a considerable majority of them expect to raise prices in the forthcoming months, according to the latest survey by the Confederation of British Industry.
In May, 31% of the surveyed firms assured their order book is in levels below average on the current month while 21% of them consider the current volume of orders as above normal which gives a balance of -10; from the -12 balance in April. Furthermore, most firms don't expect their output volume to grow over the next three months.
Despite the weak demand, prices are about to rise in the next three months, as 36% of the surveyed firms expect to put prices up against the 6% who expects prices to fall. The 30 balance on prices is the strongest since the 31 in February 1995.