CBI reports fall in optimism

The Confederation of British Industry said UK manufacturers' optimism over rising output fell to its lowest level in four months after weaker Continental markets resulted in a slight slackening in export orders.

But a broadly unchanged level of total orders this month suggests that domestic demand may have strengthened, with domestic orders taking up the slack from lower export demand.

The organisation's Industrial Trends survey for June shows that 28 per cent of companies polled thought output would rise in the next four months, while 16 per cent forecast a decline. View from City Road, page 26

Hamish McRae, page 27