FXstreet.com (Barcelona) - British manufacturing activity has slowed down somewhat in December, according to the latest Industrial Trends Report published by the Confederation of British Industry, which shows a decline in new orders but also the manufacturers' intention to raise prices over the next quarter due to increases in petrol and energy.
Although the volume of total orders remains in normal levels, according to most surveyed manufacturers, demand is weakening slightly, nevertheless the manufacturers expect their output to continue growing over the next quarter. In December, a balance of +2% of the manufacturers reported orders above normal, a somewhat lower level than the +8% posted last year.
Foreing demand however has increased to the point that it posted the first above zero balance since February; +2%, reflecting, according the CBI the consequences of a weaker Pound against the Euro.
Output growth expectations continue declining, in December, there was a balance of +3% manufacturers expecting output growth, sharply lower than the +15% historical average. On the prices side, +15% of the manufacturers expects to rise prices in order to translate the pressure of rising energy and petrol prices to the customers.