CBI SURVEY: SCLEROTIC MANUFACTURING REQUIRES BROWN ACTION

12.00.00am UTC (GMT +0000) Thu 19th Jun 2003

There is no sign of a manufacturing recovery according to the CBI's latest Monthly Trends Survey for June. Output is expected to fall in the coming months due to slowing domestic demand and the weak global economy.

39% of companies surveyed report their total order books to be below normal with only 12% reporting above normal. Export order books are even worse with 45% reporting below normal and only 10% above normal.

Matthew Taylor MP, Liberal Democrat Shadow Chancellor, said:

"How much manufacturing bad news does Gordon Brown have to get before he admits that British business is hurting."

"With the MPC hamstrung on interest rates by the levels of household debt, and a Euro decision delayed yet again, British manufacturers have little to cheer about.

"While the Chancellor waxes lyrical at Mansion House about Britain's economic future in Europe, British manufacturers are going to the wall.

"The trouble with Gordon Brown is that he is all mouth and no trousers when it comes to actually helping British business."