Bargains on the horizon for consumers as UK manufacturers confidence plummets?
The CBI Industrial Trends survey results have just been released and it looks like dark days ahead for the manufacturing sector. Factories involved in the furniture, electronics and building materials sectors are all reporting a decrease in orders, an increase in fired staff, rising costs and an inability to access credit.
38% of firms reported falling domestic orders which is the largest decline since January 1992. 9% of manufacturers reported making fewer goods due to lack of credit which is the highest reported since the banking crisis in the mid - 70's.
On the bright side for consumers there is a decrease in pricing pressure with domestic price inflation slowing and expected to slow even more rapidly in the coming quarter.
This ease in pricing pressure is likely short-lived though - so while we may make it through the Christmas season without inflationary pain the rising costs at the manufacturers will presumably catch up at some point.