Manufacturing remains robust-CBI Survey
Activity in the UK manufacturing sector remained robust in March and overall demand continued to rise, with total orders improving.
However, output growth and export orders eased on last month, according to the latest CBI Industrial Trends Survey.
The survey of 368 manufacturers found that total order books improved slightly again in the three months to March. This strength was broad based, with above-average results in 14 out of 17 sectors. Export orders fell back, but remained above average in 11 out of 17 sectors.
Output growth also slipped to a five-month low, but still remained firmly above average. Growth is expected to edge up over the next three months, albeit at a slower pace than predicted in January and February.
Anna Leach, CBI Head of Economic Analysis, said:
“The picture in the manufacturing sector remains positive. Overall, demand continues to rise and output growth is robust.
“Growth in exports is crucial to rebalancing the economy and ensuring a sustainable recovery. Over the last few surveys, manufacturing export orders have underperformed relative to overall orders as the UK’s domestic recovery has caught hold more quickly than some of our key trading partners – most particularly, the Eurozone.
“Measures announced in the budget should help businesses to break into new, faster growing markets and underpin an improvement in the UK’s export performance.”
- 29% of firms reported that total order books were above normal and 23% said they were below normal, giving a balance of +6%, an improvement on February (+3%) and well above the long-run average (-17%)
- 18% of firms said their export order books were above normal and 27% said they were below normal, giving a rounded balance of -10%
- 36% of firms said the volume of output over the last three months was up and 21% said it was down, giving a balance of +15%, well above average (+2%), but the lowest balance since October (+8%) and down on last month’s result (+24%)
- Firms expect output to grow in the coming quarter with 37% predicting growth over the next 3 months and 18% a decline, giving an overall balance of +19%
- Output price expectations moderated (+12%) compared with February (+17%)
- 21% of firms said their present stocks of finished goods were more than adequate and 7% of firms said they were less than adequate, giving a balance of +14%, the highest balance for seven months.