Motor Industry News

Manufacturing output prices 'to remain the same'

Dealerships are being warned there may be a fall in the number of units being produced by the manufacturing sector.

The Confederation of British Industry's (CBI's) Industrial Trends Survey reveals the economic slowdown means there will be no increase in order book levels.

Its research suggests output prices are predicted to stay the same or decrease, which may be welcome news for those in the retail motor industry.

More than half of manufacturers say their order books are below normal and 58 per cent of firms believe prices will remain the same.

CBI chief economic adviser Ian McCafferty claims expectations for output look "their gloomiest in 28 years".

"The weakening in factory gate prices will feed through to declining inflation in coming months, giving the Bank of England room for further significant rate cuts," he states.

Earlier in the month, the Retail Motor Industry Federation's director Sue Robinson called on the government to implement a five per cent reduction in value-added tax to encourage spending.

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