According to the latest Industry Survey conducted by the Federation of Industry, manufacturing demand continued to decline in November, as order books hit their lowest levels in 16 months.

As a result, production is expected to decline significantly in the following three months and industrial confidence for the month has deteriorated significantly.

The survey also records a further increase in the number of firms predicting a fall in selling prices, and a marked deterioration in employment expectations, the FOI said.

For the second consecutive month, and in contrast to other industrial groupings, the Investment Goods Sector registered positive industrial confidence, as total order book levels were substantially less negative than in the previous month, extending a trend that started in September.

In line with higher order book levels, manufacturers of investment goods anticipate production strengthening in the coming three months. At the same time, selling price expectations stayed in negative territory, while employment expectations were less positive than in the previous month.

Consumer goods manufacturers have again suffered a decline in total and export order book levels. However, this did not influence production expectations negatively. For the second month in succession, the survey reported a slight fall in the number of manufacturers anticipating a decline in production.

Also, stock levels in November were lower compared to the previous month. As a result, industrial confidence fin the sector improved slightly but remained in negative territory.

Selling price expectations for the sector moved into negative territory while employment expectations turned slightly positive.

Industrial confidence for intermediate producing firms deteriorated significantly in November resulting in the worst performance among the three main industrial groupings. Industrial confidence for the sector has been in negative territory since last August to reach its lowest levels ever registered.

This reflects a deterioration in total and export order books and a high level of stocks of finished products. The three-month outlook for the sector remains strongly pessimistic as production expectations scaled back substantially for the second consecutive month shifting in negative territory with a large majority of firms expecting production to fall. The survey also shows a very negative outlook for selling prices and employment in the sector.

The November Industry Survey was carried out during the first three weeks of the month. There were 207 respondents to the survey, employing just under 14,000 employees.