WiredGov Newswire (news from other organisations)
Manufacturing output growth and price inflation are expected to slow in the three months ahead – CBI monthly Industrial Trends Survey, sponsored by Accenture
UK manufacturing output slowed in the three months to June, while total order books and export order books also softened. Output growth is expected to slow further in the quarter ahead, while expectations for domestic price growth fell back to a nine-month low. That’s according to the latest monthly CBI Industrial Trends Survey.
The survey, based on the response of 212 manufacturers, found:
- Manufacturing output growth slowed slightly in the three months to June (balance of +25%, from +30% in May). Growth is expected to ease further in the three months ahead, but expectations remain well above their long-run average (+20%; average is +9%).
- Output increased in 12 out of 17 sectors in the three months to June. The motor vehicles and aerospace sub-sectors provided the largest contribution to the headline balance this month, while the food, drink & tobacco sub-sector made a negative contribution for the first time in just over a year.
- Total order books were seen as above normal to a lesser extent than last month (+18% from +26% in May), while the volume of export order books fell back to a normal level (+1% from +19% in May).
- Stocks of finished goods were seen as adequate in June, after being reported as inadequate in all but one month during the previous 13 months (+2% from -15% in May).
- Expected domestic price growth for the three months ahead eased markedly in June (+58%, from +75% in May and a survey record of +80% in March). This was the weakest expectations for selling price inflation since September 2021.
Anna Leach, CBI Deputy Chief Economist, said:
“While manufacturing output is still being supported by a backlog of orders, growth appears to be softening. Stocks of finished goods are now seen as broadly adequate and we may be seeing the first signs that weaker activity is beginning to slow the pace of price increases in the sector.
“Manufacturers continue to report a range of challenges, including significant cost pressures, shipping delays, shortages of key inputs, and, not least, recruitment difficulties. Skills shortages remain widespread and are a key constraint on growth. All of these trends are weighing on confidence.
“Companies are pursuing a range of strategies to cope with these operational difficulties, but they can only do so much and government must act now to prevent a deeper and more prolonged slowdown. Creating a permanent investment incentive and tackling skills shortages by introducing immediate flexibility to the apprenticeship levy would be strong first steps for boosting confidence.”
Latest News from
WiredGov Newswire (news from other organisations)
UK Space Agency - Virgin Orbit mission success brings UK launch another step closer04/07/2022 12:15:00
Virgin Orbit’s next satellite launch will take place from the UK, following the success of the “Straight Up” mission.
The Data City partners with CBI Economics on new net zero analysis04/07/2022 09:05:00
Companies who form part of the UK’s wider net zero ecosystem contribute £60bn a year to the economy and support 766,000 jobs – yet outdated official sector classifications risk hampering decarbonisation efforts by failing to provide the insight that’s needed.
7 in 10 councillors have experienced abuse and intimidation in the last year – LGA survey01/07/2022 10:05:00
Seven in 10 councillors reported experiencing abuse and intimidation within the last 12 months, with 1 in 10 experiencing abuse frequently, a new Local Government Association (LGA) Councillor Census revealed yesterday.
NHS Confederation - NHS leaders call for national minimum wage for social care to avoid staff exodus01/07/2022 09:05:00
Members are increasingly concerned that colleagues in social care can't meet need due to workforce challenges - we've written to the Prime Minister.
1 in 5 workplaces do not have any policies to support LGBT staff – TUC poll30/06/2022 14:05:00
New TUC poll reveals widespread lack of support for LGBT people at work
CBI - "Delivery must be the Government's watchword" - our response to the CCC's UK Annual Net Zero report30/06/2022 10:25:00
Tom Thackray, CBI Decarbonisation Director responds to the CCC's UK Annual Net Zero report
Citizens Advice responds to the telecoms announcement29/06/2022 16:25:00
Citizens Advice has responded to the government's telecoms announcement.
Citizens Advise - Ofgem is right to challenge networks to operate as efficiently as possible, says Citizens Advice29/06/2022 15:25:00
As the statutory consumer watchdog for the energy market, Citizens Advice responds to Ofgem’s draft plans for the next electricity distribution price control (known as RIIO-ED2).
LGA - Sharp rise in children with special needs approaching councils for support29/06/2022 14:25:00
The number of children in England approaching councils for special needs support has increased by almost a quarter in a year, latest figures reveal, with 170 young people now starting support plans each day.