Moderate boost to manufacturing output but ‘conditions remain difficult’ – CBI

Of the 425 manufacturers responding to the latest monthly Industrial Trends Survey, 28% expect to increase their volume of output over the course of the next three months, while 21% expect it to fall. Total order books saw an improvement from August with 19% of firms reporting them as above normal and 28% stating that order levels were below normal this month. The rounded balance of -8% is above the long-run average (-17%) and back in line with July's results. Likewise, export orders also recovered with a balance of -10%, comfortably above the long-run average of -21%. Stock levels rose to their highest level since October 2011 with a balance of +18% stating that stocks are at least adequate to meet demand. CBI head of economic analysis Anna Leach said domestic and overseas demand improvements provided a foundation for better output growth. "Manufacturers believe that there will be a modest rise in output over the coming months, driven largely by the chemicals and food and drink sectors," she added. "But uncertainty is expected to build through the autumn -- with key decisions to be made in the eurozone and the approach of the US fiscal cliff -- meaning that conditions are likely to remain difficult for UK manufacturers."