A round up of today's business stories

Optimism takes a dive among European manufacturers

Optimism among European manufacturers has fallen sharply from the beginning of this year, according to the latest KPMG/Market survey.

The survey found that expectations for profits and employment prospects had turned negative for the first time since the survey began in January 2006.

Results were based on about 3,700 manufacturers, with values ranging from -100 (most negative) to +100 (most positive). The net balance of companies forecasting a growth in activity fell to just +14.1 from +43.5 in January, with evidence of significant concern about the possibility of stagflation.

Prospects for company profits plummeted to -13.2 from +15.8 six months earlier as almost 40 per cent of manufacturers now said they expected these to fall. Employment prospects had fallen to -6.9 from +9.7 earlier this year.

However the survey among manufacturers in the economies of Brazil, Russia, India and China - the so-called Bric countries - showed a stark contrast, with business activity, profits, employment and capacity utilisation all expected to rise.

Within the European Union, the most optimistic forecasts for the business outlook were from manufacturers in the Netherlands (+37 per cent) and Germany (+26.1 per cent), while the gloomiest outlook came from businesses based in Spain (-26.6 per cent) and Ireland (-5 per cent). - (Financial Times service)

Exports rise  again in China

China yesterday announced higher-than-expected exports and a surge in factory price inflation for July, reducing the pressure for an easing of monetary and fiscal policy.

The figures showed China's trade surplus grew last month by 4 per cent compared to July last year, on top of export growth of 26.9 per cent, reducing fears about a sharp slowdown at a time of fierce debate within the government over whether to take measures to stimulate higher growth and stop the currency rising.

The government also revealed that factory gate inflation rose to 10 per cent last month, its highest since 1996 and a further indication that China might not be over the worst of its inflation problem - (Financial Times service)

Water sales buck summer trend

Bottled water and juices are driving up soft drink sales in the face of the slowing economy and bad summer.

The Beverage Council of Ireland said yesterday that total sales increased 5.6 per cent to 886 million litres in 2007, and added that this growth is continuing.

Bottled water sales increased 10 per cent to €205 million and now accounts for 22 per cent of the overall market.

Fruit juice grew 6.6 per cent and sports and energy drinks reached 52 million litres, taking almost 6 per cent of the market.

In its first annual Soft Drinks Market Review, the council said yesterday that the industry employed 6,000 people and contributed €200 million a year to the exchequer in VAT.

Independent colleges

In an article in Business This Week, it was stated incorrectly that Independent Colleges "plans to run degree programmes from next year".

This should have read "from next academic year".

From this September, Independent Colleges will offer degree courses in journalism, Irish law and psychotherapy.

Legal line

Legal line is launching a new service to allow consumers and businesses to get cost-effective advice from solicitors.

Its solicitors will offer a 10- minute consultation for €29, covering areas such as family law, employment, immigration, landlord and tenant, planning, environmental law, corporate law and commercial litigation.