The survey of nearly 500 firms discovered that manufacturers are predicting a rapid acceleration in the rate of production, with 11 of the 18 sub-sectors upgrading their output expectations over the next three months.
Export orders weakened slightly, but remained comfortably above average in the long-term. The biggest drop in export demand came in the chemical sector, with transport and motor vehicles seeing the biggest improvement.
This resulted in the level of stock adequacy climbing to the highest rate since June 2013, with half of the change in balance accounted for by chemical manufacturers.
Rain Newton-Smith, chief economist at the CBI, commented: “It’s good to see that manufacturers are enjoying a lingering summer with output running at a strong pace and manufacturers’ order books remaining solid, particularly amongst the door, drink and motor vehicles sectors.”
However, there may be storm clouds ahead, Newton-Smith warned: “There are plenty of challenges ahead for manufacturers as we adjust to a new relationship with the EU and the rest of the world. That’s why we want to see a focus on promoting investment and innovation in the Autumn Statement to ensure our makers are able to put their best foot forward and adjust to new opportunities.”
