MANUFACTURERS plan to push prices down further in order to boost slowly improving demand, according to the latest monthly trends survey from the Confederation of British Industry.

The CBI said 27% of manufacturers expected to see domestic prices fall, with only 7% anticipating an increase, giving a balance of -20.

The figure, the most negative since May this year, compares with -15 in August.

Total orders improved slightly over the past month, although they remain weak and below normal.

Some 17% of manufacturers said total order books were above normal and 32% said they were below normal, giving a balance of -15 compared with -17 last month.

Export orders improved for the second survey in a row, but remained well below normal, the CBI said. Twelve per cent said export orders were above normal, with 43% saying they were below, giving a balance

of -31, an improvement from

-35 in August.

The CBI said output was expected to improve over the coming four months, with 29% of manufacturers looking to an increase in output, and 24% a fall. The balance of +5 is up from last month's +2.

''Strong competition is taking its toll on manufacturers as more firms expect to cut prices. But the good news is that manufacturing demand, although weak, is reviving and output prospects are modestly positive,'' said Sudhir Junankar, associate director of economic analysis at the CBI.