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C B I Upbeat As Higher Costs Will Pass On To Consumers

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Factory demand surges at home


Manufacturers benefited from their strongest demand in nearly two years last month, according to the latest survey of the industry.
August’s gains are thought to be down to
stronger demand in the capital goods sector
, the CBI said, alongside
more modest increases in demand for consumer goods.
Together these helped counteract a slide in the intermediate goods sector, the CBI said.
Businesses also reported more confidence that they will be able to pass more of their increasing costs on to buyers by hiking domestic prices,
with a balance of 13% of factories saying they expect to raise their average prices over the next three months.
“With better demand, it is not surprising that more firms hope to pass these on in the form of higher prices. However, with continuing intense international competition, opportunities to do so will remain limited.”

It had to happen eventually--the true cost of manufacturing passed on. Can Gordon adjust his miraculous basket of goods in time?


Times Online August 23, 2006

Manufacturers' orders at 20-month high

By Rhys Blakely

Manufacturers’ order books are running at their best level in 20 months but improved demand has increased pricing power that could stoke inflation, CBI figures showed today.
In its monthly industrial trends survey, the employers’ organisation said a balance of -8 per cent reported order books were above normal in August, against -11 per cent in July. The figure wrong-footed analysts who had expected a deterioration to -13 per cent.
Despite remaining in negative territory, the CBI said the figure was the strongest since December 2004. The improvement was mainly due to stronger demand in the capital goods sector, which includes shipbuilding, aerospace and industrial machinery. There was also a modest increase in consumer goods.
The CBI said the improvements appeared to be driven by domestic demand, as the level of export order books was unchanged from July. However, the balance for firms’ expectations of future output fell to +11 from +14 in July.
Ian McCafferty, chief economic adviser at the CBI, said: "The outlook remains encouraging for UK manufacturers but it is disappointing that
export orders have not improved more, given the current revival of the euro zone economy, our principal market."

Sterling is too high for exports. Either devalue or cease selling overseas. :o

Edited by Realistbear

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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