–Adds Detail To Version Transmitted At 1000 GMT
–UK CBI Monthly Trends: June Total Orders -23 Vs -18 in May
–UK CBI: June Output Volume +15 vs +17 in May
–UK CBI: June Average Prices +9 vs +14 in May
–UK CBI: June Export Orders -2 vs +3 in May

LONDON (MNI) – Demand for UK manufactured goods weakened slightly
in June following the significant improvement seen in May, the
Confederation of British Industry said today.

The CBI said that the latest numbers did not affect the underlying
improving trend and noted that the orders balance remains close to the
long-term average of -18.

Export orders were also a little weaker compared with May, the CBI
said. The balance of -2 shows that export orders are still seen as
broadly normal as against the 3 seen last month, which was the first
positive balance seen March 2008.

Manufacturers still expect to raise output in the next three
months, with a net 15% expecting production to rise, little changed on
May’s 17% balance – and above the long-term average of 5%.

Inflation pressures remain, but have eased a little, with a balance
of 9% of firms expecting to raise prices, slightly lower than in the
past 3 months. Producers of consumer goods no longer expect domestic
prices to rise, while manufacturers of capital goods and heavy machinery
continue to forecast no change.

CBI Chief Economic Adviser Ian McCafferty said:

“Although demand for UK-made goods has weakened a little this
month, the manufacturing sector remains on a path of recovery, with
conditions much improved on just a few months ago. UK exports continue
to be boosted by the weak pound and strengthening world trade, firms
still expect a healthy rise in production in the coming months and
inflationary pressures look to be easing a little”.

Stock adequacy was pretty much the same as in the past 3 months,
with a net 11% firms reporting that stocks are more than adequate to
meet demand. This is below the long-run average.

The survey was conducted between May 25 and June 9.

–London bureau: 44 20 7862 7941; email: ukeditorial@marketnews.com

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