UK Industry Looks On The Bright Side

The number of UK factory order has remained at a ‘healthy level’ for the month of August despite losing some value on the decade-highs witnessed through last month, according to a survey published today.

In a survey released today by the CBI, its monthly order index was up to the figure of +6 which remains at a healthy level, despite highs of +9 through the course of July, reflecting that industry hasn’t as of yet been too badly affected by global externalities like the sub-prime lending sector.

However, the figures also showed that manufacturing firms were more optimisitic about the direction of the economy in future, with industrial expectation figures rising from +13 in July to +17 in August.

The improvement in expectation is thought to be largely as a result of strong global demand for component parts in manufacturing industries, of which the UK has established itself as a major player.

Many analysts have taken the news today as a positive indicator, that in spite of a very strong pound against the dollar and the ongoing volatility in world markets, manufacturing industries are remaining optimistic justifiably through strong orders on the month.

With the value of the pound soaring significantly above the dollar, many analysts had expected those involved in exporting goods to be strongly hit as a result. However, a strong euro has helped maintain exports to the eurozone across the manufacturing industries, which has no doubted added to the figures released today.

Additionally, on the back of Federal Reserve interest rate cuts, many manufacturing businesses are seeing faith restored in the future of a stable global economy, which augers well for production output and manufacturing orders over the foreseeable future.

The news was reflected well on trading on the FTSE today, which gained marginally on the day from yesterday to write off earlier losses and close the week up.

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