Manufacturing output falls further, with volumes tipped to be flat through to the year's end - CBI Industrial Trends Survey

22 Sep 2023 12:30 PM

Manufacturers reported that output volumes declined more quickly than expected in the three months to September, according to the CBI’s latest Industrial Trends Survey. Output volumes are expected to stagnate over the next three months.

Following eight consecutive months in which expectations for selling price inflation have eased, manufacturers reported that growth in selling prices would pick up again in the three months to December. However, barring last month’s survey, selling price expectations remain at their weakest since early 2021.

The survey, based on the responses of 292 manufacturers, found:

Full results are in the attachment accompanying this release. 

Anna Leach, CBI Deputy Chief Economist, said:

“Output in the manufacturing sector weakened over the past quarter and is expected to flatline at best through the rest of this year. With order books having been below their long-run average for 8 out of the last 9 months, manufacturers see little prospect of a recovery in the final months of the year.

“Materials and financing costs are high and squeezing manufacturers and their customers alike. The Autumn Statement provides an important opportunity for the Government to lay the foundations for a sustainable recovery through a broad focus on tax incentives for investment, support with upskilling workers and help for firms to make the most of green growth opportunities.”