There are further signs of stabilisation in UK manufacturing, according to the CBI’s latest Industrial Trends Survey. Order books improved for the second consecutive month, with total orders reported as below normal to the smallest extent since July 2023. Export order books also remained relatively strong, despite easing back from August.
Output volumes fell only marginally in the three months to September, representing the slowest rate of decline for more than a year. Manufacturers expect output to fall only slightly again over the next three months.
The picture was mixed across industries, with output falling in 12 of the 17 sub-sectors surveyed. Metal products, food, drink and tobacco, and electronic engineering were among those recording declines, while motor vehicles and transport equipment, mechanical engineering and chemicals saw output increase.
There was also some easing in selling price expectations, which fell significantly from August and are now only slightly above their long-run average. However, manufacturers reported that stocks of finished goods had become less adequate, suggesting that inventory levels are becoming tighter.
Overall, the survey points to some improvement in the underlying manufacturing picture, although the CBI cautions that it is too early to regard this as a sustained recovery. Manufacturers continue to face pressures from supply chain, energy and employment costs.
The survey was conducted between 27 August and 14 September, with responses from 234 manufacturers.
You can get the Press Release of the CBI Industrial Trends Survey from their website at http://www.cbi.org.uk/media-centre (22 September) or request it from MTA.