According to the CBI’s latest Industrial Trends Survey, manufacturing companies have reported that both overall order books and export order books had strengthened to multi-decade highs in June.
In the survey of 464 manufacturers, it was found that order books climbed to the highest level since August 1988. The key findings of the survey found that 27% of manufacturers reported total order books to be above normal and 12% said they were below normal, giving a balance of +16%. This was the highest level seen in nearly three decades, since August 1988 which was at +17%.
Adding to this, the survey found that 23% of firms said their export order books were above normal with just 10% reporting a below normal level, giving a balance of +13%. This increase was also the highest balance since June 1995 at +20%. Over 30% of businesses said that output volume output over the past three months had grown and 15% said it was down. This less positive statistic gave a balance of +15%, which is a decline from the balance of +28% seen in May.
In the next quarter manufacturers expect output to grow at the same robust pace with 37% predicting growth and just 9% expecting a decline. Furthermore, export orders also improved to 22-year high, hitting similar peaks to those seen in 2011 and 2013. Commenting on these statistics, Rain Newton-Smith the Chief Economist at the CBI said: “Britain’s manufacturers are continuing to see demand for “Made in Britain” goods rise with the temperature. Total and export order books are at highs not seen for decades, and output growth remains robust. Nevertheless, with cost pressures remaining elevated it’s no surprise to see that manufacturers continue to have high expectations for the prices they plan to charge. To build the right future for Britain’s economy, manufacturers and workers, the Government must put the economy first as it negotiates the country’s departure from the EU. This approach will deliver a deal that supports growth and raises living standards across the UK.”
