Finance Matters

Posts Tagged ‘Confederation of British Industry’

According to the Confederation of British Industry (CBI), confidence among UK manufacturing firms has slumped as a result of the debt crisis in the euro zone, as well as a fall in expectations for future growth.

The latest industrial trends survey by the employers’ group established that 30% more businesses were pessimistic about the future than optimistic, while companies expected a fall in orders, output and staff.

The combined order book for the companies surveyed dived to -18 in October from -9 the previous month – the lowest level for a year.

Furthermore, expectations for output in the next quarter slumped to -11 this month from +9 in September – the lowest level since July 2009.

The latest report has fuelled concern that the UK economy may be headed for a double-dip recession.

Commenting, Ian McCafferty, the CBI’s chief economic adviser, said: “Manufacturers saw modest growth in orders and production over the past quarter.

“However, sentiment has deteriorated sharply and firms expect sizeable falls in activity over the next three months. The quarterly fall in sentiment is the largest since the height of the recession in mid-2009.”

The figures are based on the CBI’s quarterly survey of industrial trends, which was conducted between 26 September and 12 October, and questioned almost 450 manufacturing firms.

The Confederation of British Industry (CBI) is calling on the Government to launch new initiatives to boost the ailing housing market, suggesting it could help economic growth.

The business lobby group wants Chancellor George Osborne to launch the fresh initiatives in his autumn statement, which will be delivered later this year.

In a speech to the CBI North-East Annual Dinner last night, John Cridland, director-general of the CBI, said: “Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”

Mr Cridland added: “A way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.

“Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life.”

Mr Cridland is calling on the Government to consider introducing a new Mortgage Indemnity Guarantee (MIG) scheme and more shared ownership schemes, in order for many to get onto the property ladder.

Cridland says: “Now is the time to stop the stagnation and get the housing market flowing again. The CBI wants to see a revitalised MIG, to reduce the risk of higher LTV mortgages.”

The UK housing market remains under pressure due to a lack of demand, unaffordability and a lack of mortgage products.

Mortgage approvals are picking up but are well below levels seen prior to the financial crisis.

First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the latest figures from the Council of Mortgage Lenders (CML).

The CML also said with house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, meaning affordability remains a major issue for first-time buyers and home-ownership becomes out of reach for many.

The CBI believes by boosting activity in the housing market, it could be a “game-changer” for economic growth.

Last month, the business group predicted the UK economy will grow by 1.3% this year, down from its previous forecast of 1.7%, made in May.

The Confederation of British Industry (CBI) is calling on the Government to launch new initiatives to boost the ailing housing market, suggesting it could help economic growth.

The business lobby group wants Chancellor George Osborne to launch the fresh initiatives in his autumn statement, which will be delivered later this year.

In a speech to the CBI North-East Annual Dinner last night, John Cridland, director-general of the CBI, said: “Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”

Mr Cridland added: “A way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.

“Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life.”

Mr Cridland is calling on the Government to consider introducing a new Mortgage Indemnity Guarantee (MIG) scheme and more shared ownership schemes, in order for many to get onto the property ladder.

Cridland says: “Now is the time to stop the stagnation and get the housing market flowing again. The CBI wants to see a revitalised MIG, to reduce the risk of higher LTV mortgages.”

The UK housing market remains under pressure due to a lack of demand, unaffordability and a lack of mortgage products.

Mortgage approvals are picking up but are well below levels seen prior to the financial crisis.

First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the latest figures from the Council of Mortgage Lenders (CML).

The CML also said with house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, meaning affordability remains a major issue for first-time buyers and home-ownership becomes out of reach for many.

The CBI believes by boosting activity in the housing market, it could be a “game-changer” for economic growth.

Last month, the business group predicted the UK economy will grow by 1.3% this year, down from its previous forecast of 1.7%, made in May.

The Confederation of British Industry (CBI) is calling on the Government to launch new initiatives to boost the ailing housing market, suggesting it could help economic growth.

The business lobby group wants Chancellor George Osborne to launch the fresh initiatives in his autumn statement, which will be delivered later this year.

In a speech to the CBI North-East Annual Dinner last night, John Cridland, director-general of the CBI, said: “Without a steady stream of eager first-time buyers the housing market stagnates and our whole economy suffers.”

Mr Cridland added: “A way of helping first-time buyers to access finance to get on the property ladder could be to allow them to access locked savings in their personal pension pots through a loan-back scheme.

“Members of company schemes could borrow money from their own pension pot at a low cost, paying the loan back through their salary at any time during their working life.”

Mr Cridland is calling on the Government to consider introducing a new Mortgage Indemnity Guarantee (MIG) scheme and more shared ownership schemes, in order for many to get onto the property ladder.

Cridland says: “Now is the time to stop the stagnation and get the housing market flowing again. The CBI wants to see a revitalised MIG, to reduce the risk of higher LTV mortgages.”

The UK housing market remains under pressure due to a lack of demand, unaffordability and a lack of mortgage products.

Mortgage approvals are picking up but are well below levels seen prior to the financial crisis.

First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the latest figures from the Council of Mortgage Lenders (CML).

The CML also said with house prices edging higher for the year to date, the average new mortgage has gone back up to £120,000, meaning affordability remains a major issue for first-time buyers and home-ownership becomes out of reach for many.

The CBI believes by boosting activity in the housing market, it could be a “game-changer” for economic growth.

Last month, the business group predicted the UK economy will grow by 1.3% this year, down from its previous forecast of 1.7%, made in May.

According to the latest Confederation of British Industry (CBI) distributive trades survey, the volume of sales on the UK High Street were lower this month versus a year ago.

The figures suggest continue to be cautious about the economic outlook and rein in their spending on the back of rising unemployment, higher inflation and slow wage growth.

The CBI’s survey established that 24% of retailers saw sales volumes rise on an annual basis, while 39% reported a fall.

As a result, the balance fell to -15% – the lowest since May 2010.

The survey, which was conducted between 25 August and 14 September, discovered that most sub-sectors suffered with falls in department stores, clothing, footwear, furniture and carpets.

Commenting on the figures, Judith McKenna, chair of the CBI Distributive Trades Panel, said: “High street sales are sluggish but appear to be stabilising.

“However consumer confidence continues to be bruised by a combination of low wage growth, high prices and rising unemployment. Shoppers are still clamping down on discretionary spending and focused on buying the basics at the best price.”

Ms McKenna, who is also ASDA’s chief operating officer, added that consumers will continue to struggle with the winter utility bills hike and, as a result, retailers will face a challenging October.

The survey questioned more than 130 firms, of which 74 were retailers, 50 were wholesalers and 15 motor traders.

The figures tie-in with other reports about the High Street after accountancy firm BDO recently warned Britain’s retailers should prepare themselves for some tough times as pressure builds on consumers in the run-up to Christmas.

Several well-known retailers have recently reported falls in sales volumes with the John Lewis Partnership, which is regarded as a barometer of British retailing, recently reporting a marginal increase in sales but said trading conditions are “extremely challenging”.

The renowned employee-owned chain, which owns the Waitrose supermarket group, said sales rose 1% on a like-for-like basis in the six month period to 30 July.

However, across the group, first-half pre-tax profits slumped by 18% to £90.4 million.

Earlier this month, Home Retail Group announced a drop in sales at both its Argos and Homebase chains, while electrical goods chain Dixons Retail also posted a fall in sales.

Today meanwhile, Game Group, which sells computer and video games, consoles and accessories, said it made a pre-tax loss of £51.5 million in the six months to July 31, against a loss of £21.5 million in the same period a year earlier.

The company typically makes its profit in the latter half of the year when sales are boosted by the crucial Christmas trading period. However, it expects conditions to remain challenging for the remainder of the year.