Only two of the 10 industry groups surveyed this month - chemicals and metal products - expect prices to rise in their sector over the coming three months. Cost pressures from high oil and transportation prices will only serve to depress profits further,
More Quotes from Ian McCafferty:
The increase in business with private individuals in the past three months is striking, and partly reflects the pick-up in the housing market from last year's low.Ian McCafferty
Christmas, in retailing terms, is coming later and later each year as consumers play chicken with the high street and delay their spending in the expectation of late price cuts as the big day draws nearer.
Ian McCafferty
Although it is too early to say if this month's decline in export demand is the start of a trend, the fall is a further blow for manufacturers at a difficult time. Firms will be hoping this is not the first sign of slow-down in the global economy in the face of the latest oil price increases.
Ian McCafferty
The Bank has chosen to follow a steady course. This is particularly understandable given current mixed economic signals. The slightly less negative recent news from the housing and retail sectors contrasts with increasing pressures on manufacturers from the high cost of fuel and materials. The MPC should stay alert to further weaknesses in the economy and must remain on standby to cut rates over the coming months.
Ian McCafferty
With retailing and manufacturing both very weak, the fact that services are slowing is particularly worrying.
Ian McCafferty
There are glimmers of hope on the horizon for manufacturers who have endured a long-lasting downturn. But at a time when commodity and energy prices continue to rise unabated, UK manufacturing is not out of the woods yet.
Ian McCafferty
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