Manufacturers suffer slip in confidence

LONDON (ShareCast) - Falling orders and big rises in the cost of raw materials have hammered confidence in the UK manufacturing sector, a report by the CBI and Experian (LSE: EXPN.L)revealed today.

The Confederation of British Industry's regional trends survey revealed most areas suffered a drop in orders, but Yorkshire and the Humber, the North West and the West Midlands are feeling the worst of it.

London also reported a drop in outpuit during the three months to July. "Manufacturing confidence has tumbled over the past quarter," said the CBI's head of economic analysis Lai Wah Co.

Unit (NYSE: UNT) costs rose across the UK during the period at their fastest pace since the survey began in 1988. Businesses had to contend with a surge in the price of oil and other raw materials.

"Although firms are having some success in passing these costs on, profit margins are under pressure," added Co.

The West Midlands ans Scotland are expected to suffer most over the next three months, the survey showed.

Source:http://uk.biz.yahoo.com/080804/214/i4b2f.html