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January 29, 2023
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Manufacturing

Manufacturing output growth ‘remains robust’ Magazine

Manufacturing order books and export order books remained well above their years to come average, according to the latest monthly CBI Industrial Trends Survey.

According towards the survey of 397 manufacturers, output grew at a healthy pace from the 3 months to February.

Growth was broad-based with output growing in 16 away from 17 sub-sectors with growth predominantly driven by Food, Drink and Tobacco, and Automobile and Transport Equipment sub-sectors.

Respondents anticipate that output growth will slow slightly in the next 11 weeks, broadly matching the pace welcomed in September and October a year ago.

Expectations for output price inflation weakened from last month’s 34 year high, but remain through the historical average. Meanwhile, stocks were widely known as above adequate levels, but beneath the long-run average.

Looking at rise in the economy more broadly, momentum was tepid for all of 2017. We expected similarly subdued growth to persist further ahead.

Demand from the manufacturing sector should stay buoyed via the lower pound and buoyant global economy. Nonetheless the CBI said they expect consumer-facing companies and retailers to stay to struggle while consumer incomes remain being forced from higher inflation.

“This month saw another strong showing from UK manufacturers. Although order books weren’t quite as buoyant because they were recently, demand remains strong and output grew briskly,” said CBI Head of Economic Intelligence, Anna Leach.

“With the Brexit negotiations reaching an important juncture, many companies are worried about future barriers to trade and therefore are interested in clarity over the future relationship using the EU.

“Remaining in the comprehensive customs union may help alleviate some of the fears and offer firms the boldness to speculate and grow.”

Tom Crotty, Group Director of Ineos and Chair of CBI Manufacturing Council, added: “Manufacturers are benefitting within the health in the global industry. But companies still tough get the workers they should be boost their business.

“To ensure you will find a strong pipeline of an individual while using the technical skills needed, we require young people to receive further education and careers advice built upon the demands of employers.”

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