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with the balance rising to +10, from +7 in 2002 Q2. This survey balance had also remained close to its
long-run average. The CBI survey had not pointed to a significant change in capacity utilisation in the
manufacturing sector, while the BCC survey had shown a slight decline.
A29 Business confidence in the service sector had eased, according to the BCC survey, although the
survey balance had remained close to its long-run average. According to the CBI Industrial Trends
Survey, business confidence among manufacturers had fallen sharply in 2002 Q3, with the survey's
optimism balance falling to 19, from +4 in the 2002 Q2 survey. This decline in confidence had not
been mirrored in the equivalent BCC survey, which had actually shown a slight rise in business
confidence among manufacturers.
A30 The BCC survey had pointed to a slowdown in demand growth in the service sector. The
balance for domestic orders had fallen to +12 in Q3, from +19 in Q2. The CIPS services survey had
shown continued growth in business activity in October.
A31 The CBI manufacturing survey had shown a decline in the total new orders balance in Q3, which
had eased to 16, from 11 in Q2. But manufacturers' expectations about output growth had remained
positive, with a balance of +8. The BCC domestic orders balance had eased only slightly in Q3, to +8
from +9 in Q2. The CIPS manufacturing survey for October had pointed to a rise in new orders,
although the index had fallen from 52.1 to 51.3. Similarly, the output balance had shown growth in
manufacturing output in October, despite falling back slightly to 53.1, from 53.7 in September.
A32 The Bank's Agents had conducted a survey of around 175 firms, covering retail goods, motor
vehicles, financial services, and consumer and leisure services. Respondents had been asked how they
expected the next six months to compare with the previous six, in terms of growth in value and volume
of sales to individuals, and prices charged to customers. Companies covered by the survey had a total
turnover of £54bn.
A33 Weighted by turnover, the majority of respondents in each of the main sectors had expected
that growth in the value of sales to individuals over the next six months would be the same or slightly
lower than in the previous six months. Retail respondents had cited greater economic uncertainty as
the reason for expecting slower growth. There had also been some examples where respondents had
expected slower growth in housing market activity to affect sales of furniture. Among consumer and
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