UK manufacturing output experienced a decline in the three months leading up to August, according to the CBI’s Industrial Trends Survey. While manufacturers anticipate a modest increase in output in the coming months, expectations have softened compared to previous forecasts.
The survey, based on responses from 222 manufacturers, revealed that total order books improved slightly in August but remained below normal levels. Stock adequacy for finished goods rose marginally, while expectations for selling price inflation accelerated.
Output volumes fell in ten out of seventeen sub-sectors during the period, with furniture & upholstery, glass & ceramics, and electrical goods experiencing the most significant declines. Despite this, manufacturers remain cautiously optimistic about future growth, with expectations for a modest increase in output in the coming months.
Ben Jones, CBI lead economist, commented on the stop-start recovery seen in recent months, noting that while output volumes fell in August, there is still confidence in a potential uptick in the autumn. However, expectations for growth have diminished from their two-year high last month.
Overall, the UK manufacturing sector continues to face challenges, including rising costs and uncertainties in the global economy. While there are signs of resilience and a potential for modest growth in the coming months, the sector’s long-term outlook remains uncertain.
