The latest monthly Industrial Trends Survey of 429 manufacturers found that while output growth slowed last quarter, the rate of growth remained well above the long-run average. Respondents expect output growth to bounce back next quarter, broadly matching the robust pace seen in the three months to July and August.
Both total orders books and export order books remained strong, with 24% of manufacturers reporting total order books to be above normal and 17% below normal – giving a balance of +7% and above the long-run average of -14%. Meanwhile, 19% of firms said their export order books were above normal and 9% below normal – giving a rounded balance of +10% and above the long-run average of -19%.
Additional findings show that firms’ expectations for output price inflation remain elevated after picking up in the three months to August, but have eased compared with the first half of 2017. Stock levels were also considered to be above adequate levels, but below the long-run average.
CBI head of economic intelligence Anna Leach said: “Manufacturers continue to report solid growth in output, while total order books and export order books are holding firm. Expectations for selling prices were largely in-line with the previous month, but price pressures do appear to have moderated somewhat since earlier in the year.”
CBI: Output growth slows but outlook remains strong
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UK manufacturing firms reported that output growth eased in the three months to September, while expectations for selling prices remained elevated, according to CBI.
