UK manufacturing orders still under pressure
The CBI has today attempted to pour cold water on hopes that the UK economic turnaround is just around the corner. The CBI industrial survey into UK manufacturing orders shows that the balance of order books fell to -59 in July from -51 in June. There had been hopes of a partial recovery in July but these have been dashed in the short-term.
However, the export order survey was slightly more upbeat with July showing -45 against a June figure of -52 although there is still some concern that the increase was fairly flat when you consider the UK pound has been in steady decline for some time. A number of manufacturers in the UK are pinning their hopes on the currency exchange rate, which fell sharply then bounced and is ultimately trending down again.
It does seem strange to be talking about the UK manufacturing sector being under pressure because ultimately this has been the situation for a number of years. As we have covered on other occasions, the UK economy has by and large transferred from a manufacturing base to a services based arena. However, there are hopes that in the short to medium term we will see UK exports become more competitive due to the pressure on the currency which could ultimately bailout many UK manufacturers.
Share this..
Related stories
FSA reveals traffic light warning system
As the FSA (Financial Services Authority) continues to reinvent the wheel, i.e. the UK regulatory system, a rather bizarre traffic light warning system has been revealed. The FSA wants to introduce a colour-coded system, very similar to the one in UK supermarkets, which would see the colour on a financial package reflect its perceived risk element. Mortgages, pensions, insurances and other investm...
Read MoreSwedish government hit by Baltic crisis
As we covered in one of our posts yesterday, the almost inevitable collapse of the Latvian economy is set to send shockwaves across Europe. Swedish banks have a particularly high exposure to this economy and as such the Swedish government is rumoured to be preparing to part nationalise a whole host of banks in the country. This will then see pressure on the Swedish currency, the Swedish economy an...
Read MoreIs the UK government reducing UK competitiveness by increasing taxes?
A survey by accountants MacIntyre Hudson has confirmed that three quarters of businesses in the UK believe that the UK government is seriously risking the short-term recovery in the UK economy because of its punitive tax regime. This particular point has been reiterated by the two pence a litre increase in fuel tax just today which is the latest in a long line of subtle yet very effective tax incr...
Read MoreNationwide home survey shows first rise in over 12 months
The Nationwide housing survey has confirmed the first annual rise in UK home prices for 19 months. In the 12 months to October 2009 the price of the average home in the UK increased by 2% although the rate of increase has slowed from 1.4% in August and 0.9% in September to just 0.4% in October. While there may be a number of factors to explain the reduction in the rate of increase, the very fact t...
Read MoreHas Gordon Brown backtracked on his G20 targets?
Gordon Brown has today come under intense pressure after an apparent change in strategy regarding the forthcoming G20. Despite travelling around the world for the last week or so championing his cause for a concerted effort to revive the worldwide economy it would appear there will be no "spending pledges" at the forthcoming meeting.
This is a major change in strategy from the UK go...