Picon's latest quarterly industrial trends survey has suggested a positive business outlook among suppliers despite tough trading conditions in the last two quarters.



The survey showed a positive percentage balance of seven points, up four points in the first quarter, among approximately 70 of Picon's 150 members who took part. However, the figures was down from 22 in last year's third quarter. The outlook for profits was still negative at minus seven.



Export forecasts were less negative than expected, while manufacturing output was predicted to rise by 36 points in Q3.
However, domestic and export prices fell sharply over the past three months.



The companies surveyed planned little investment in plant, machinery or buildings in the next year.



The US, Germany and Italy were rated as the top export markets, with China, Spain and Germany heading the list of potential markets.



Picon chief executive John Brazier said: "The business environment is unforgiving, especially for exporters. The slight increase in export confidence is to be welcomed, although it may be that exporters are becoming accustomed to difficult market conditions.
"The anticipated third quarter rise in order books is encouraging, and may be the first sign of converted Drupa sales filtering through to production departments."


Story by Eloise Seddon.