The respected CBI survey has just announced that its latest survey of 397 manufacturers has shown that output has continued to grow in the three months to February. The broad growth arrived with 16 out of 17 sub-sectors showing positive figures. The participants expect output growth to ease-off over the next three months to show a pace of growth similar to September and October 2017.
The key statistics show that 30% of manufacturers highlighted order books above normal with another 20% reporting a normal balance. This clarifies a positive +10% balance compared to the long-running average of -14%.|Output volumes were up 24% with 39% of businesses reporting growth and just 15% reporting a decline. In the face of Brexit, 22% of businesses reported higher order books, export orders are currently standing at +10%, again outperforming the long average of almost -20%. With 32% expecting a volume increase and half as many predicting a decline, output growth is showing a positive balance of +16%.
Anna Leach, CBI Head of Economic Intelligence, said: “This month saw another strong showing from UK manufacturers. Although order books weren’t quite as buoyant as they were last month, demand remains strong and output grew briskly. With the Brexit negotiations reaching a critical juncture, many businesses are concerned about future barriers to trade and are looking for clarity over the future relationship with the EU. Remaining in a comprehensive customs union will help alleviate some of those fears and give firms the confidence to invest and grow.”
