Manufacturers expect a sharp fall in output in next three months - CBI/Accenture Industrial Trends Survey

22 Sep 2022 04:31 PM

UK manufacturers reported a slight fall in output in the three months to September, with a much sharper decline expected in the next three months, according to the latest CBI/Accenture monthly Industrial Trends Survey. This is the weakest expectation for output growth since the three months to January 2021.

The survey found that total order books were seen as broadly normal in September, while stocks were more than adequate for the first time since April 2021. Manufacturers continue to expect a rapid increase in average selling prices in the coming quarter (+59% from +57% last month).

The survey, based on the responses of 238 manufacturing firms, found:

Full results are in the attachment accompanying this release.

Anna Leach, CBI Deputy Chief Economist, recently said:

“It is clear that the downturn, which originated in consumer-facing services, has spread to manufacturing, with output falling for the second month running. When adding an uncertain demand environment to ongoing input and labour shortages, and a cost-of-doing-business crisis, the outlook looks increasingly challenging for the sector.

“If the country is going to fulfil the government’s ambitious plans to supercharge economic growth, businesses need the confidence and the capital to invest. The announcement of support on energy bills is a good first step, and the CBI looks forward to working in lockstep with the Government going forward.”