Survey reveals manufacturing output slows

The latest monthly CBI Industrial Trends Survey reveals UK manufacturing output slowed in the last quarter, with forecasts predicting output growth to slow further in the coming months. Total order books and export order books were also lower.

The manufacturers survey found that while manufacturing output growth was positive, it fell from +30% in May to +25% in June. Output increased in most sectors with motor vehicles and aerospace the strongest, while the food, drink and tobacco sub-sector had a negative contribution.

Anna Leach, CBI Deputy Chief Economist, said: “While manufacturing output is still being supported by a backlog of orders, growth appears to be softening. Manufacturers continue to report a range of challenges, including significant cost pressures, shipping delays, shortages of key inputs, and, not least, recruitment difficulties. Skills shortages remain widespread and are a key constraint on growth. All of these trends are weighing on confidence.

“Companies are pursuing a range of strategies to cope with these operational difficulties, but they can only do so much and government must act now to prevent a deeper and more prolonged slowdown.”