Manufacturing on even keel

The latest report from CBI’s Industrial Trends Survey shows that manufacturing output has remained on an even keel in the three months to May.

Output has remained broadly unchanged across manufacturing, still keeping above average figures, although output in the last quarter is the lowest since April 2016.

The survey, which seeks the opinions of over 400 manufacturers, found that orders had fallen to their lowest since November 2016, but are also still above the long-run average. While export orders are holding their own at a steady level well above average.

The current figures leave the sector feeling positive, with substantial growth expected over the next quarter.

Anna Leach, CBI Head of Economic Intelligence, said: “UK manufacturing has lost some steam since the start of the year, on the back of a softening in both domestic and global growth.

“While global economic growth – particularly in the EU – has disappointed in the first quarter of the year, demand from overseas continues to shore up manufacturing activity in the UK, with export order books remaining well above historical average.”

Tom Crotty, Group Director of Ineos and Chair of CBI Manufacturing Council, said: “Overseas markets are crucial for the prospects of UK manufacturers.

“To plan their future investments effectively, it’s absolutely vital that trade between the UK and the EU remains as frictionless as possible, and that there are no further barriers to trade either North-South or East-West for Northern Ireland. Progress must also be made on critical issues like immigration and EU rules.”

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