19 May 2017

UK manufacturing output growth picks up pace

Manufacturing order books improved on April, and output growth accelerated in the three months to May, according to CBI.

Its latest Industrial Trends Survey of 432 manufacturers reported that total order books were the highest since February 2015, with 26% of manufacturers reporting total order books to be above normal and 17% below normal – a balance of +9%.

Export orders also stayed robust, CBI said, with 22% of firms stating their export order books were above normal and 12% below normal – a balance of +10%.

Meanwhile, output growth picked up pace, with 41% of businesses saying the volume of output over the past three months was up and 12% down – giving a rounded balance of +28% (the fastest pace of growth since December 2013).

CBI said this was underpinned by the mechanical engineering and chemicals sectors.

However, pricing pressures remain strong, CBI warned, with manufacturers continuing to expect a sharp rise in average selling prices. Expectations have also eased slightly and stock adequacy improved marginally.

Rain Newton-Smith, CBI chief economist, said: “The summer sun has come out early for Britain’s manufacturers. Robust demand at both home and abroad is reflected in strong order books, and output is picking up the pace.

“On the other side of the coin though, we have mounting cost pressures and expectations for factory-gate price rises are running high.

“Boosting productivity is key to alleviating some of the cost pressures that manufacturers are facing. Sustained investment in innovation and education will be vital to shore up the success of British industry.”

Author
Adam Offord

Supporting Information

This material is protected by MA Business copyright
See Terms and Conditions.
One-off usage is permitted but bulk copying is not.
For multiple copies contact the sales team.

Do you have any comments about this article?

Add your comments

Name

 
Email

 
Comments
 

Your comments/feedback may be edited prior to publishing. Not all entries will be published.
Please view our Terms and Conditions before leaving a comment.

Related Articles

Thermex gets additional sales

A Redditch-based manufacturer has secured more than £2 million of additional ...

AME director at Subcon

The director of the Institute for Advanced Manufacturing and Engineering (AME) ...

Barometer shows positivity

The UK’s small to medium sized manufacturers appear to be getting to grips with ...

A refreshing outlook

A recent Works Management tour to Coca-Cola European Partner’s Wakefield site ...

Lines of credit

Most people care little for money except counting their own. But in business it ...

For Whom the Bell Tolls

The end of shift bell stands silent at a shipyard on the Clyde that’s ...

Investing in the future

Supporting Manufacturing & Engineering North East will enable his company to ...

Siemens Magnet Technology FT

Visit the home of innovation: Siemens Magnet Technology

Fujifilm Speciality Ink System

Achieve world beating quality by touring Fujifilm’s digital ink plant

How to make it in industry

Find out how EAL learners and apprentices at KMF Precision are making it in ...

Meet the Champions: Gary Ashby

Process technician, Gary Ashby transformed an unfancied factory area into the ...

Meet the Sponsors - Brammer

Visit Brammer on stand C19 and see how Insite?? can boost your bottom line says ...

Shop talk

Cy Wilkinson, managing director of Cressall Resistors talks about the drive to ...