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Page 37
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• The Confederation of British Industry Quarterly Industrial Trends Survey published on 22 January makes soberin reading for hauliers who collect from ti factory gate, It warns that huge parts' the manufacturing sector are standing idle and the number of manufacturers operating below capacity has risen to a 20-year high, fuelled by a relentless twr year decline in orders and output.
Manufacturers' confidence is dropping as weak global demand "threatens to keep the sector mired in recession". Up to 74% of firms are working below capacity, the highest percentage since January 1983. This shows a worsening position: the last twi surveys showed 67% under capacity. It survey says 31% of firms saw a fall in total orders in the four months to January, while 22% saw a rise. This marks the eighth quarter of declining demand. Output has fallen and firms expect no upturn over the next four months. This makes three consecutive quarters when "expectations for rising demand and production were dIsappoinl big".
Export predictions are equally gluon with orders falling at the fastest rate fi a year while export prices declined at ti fastest rate since July 2000.