CBI Industrial Trends Survey reports improvement in manufacturing activity during November

According to the latest monthly CBI Industrial Trends Survey, manufacturing output growth picked up in the quarter to November, and firms saw overall order books rebound from a fall in October.

The survey of 381 manufacturers found that output volume growth accelerated in the three months to November, outpacing the long-run average.

Output expanded in 13 of the 17 sub-sectors, with growth driven by the food, drink & tobacco, motor vehicles & transport equipment, and chemicals sub-sectors.

Firms expect output growth to slow somewhat over the next quarter.

Meanwhile, total order books strengthened in November after worsening in October, and were more robust than the long-run average.

Export order books improved marginally following a weakening in October, and, likewise, remained stronger than the historical average.

Average selling prices were expected to increase at a steady pace, above the long-run average, while stocks were marginally above adequate levels, but below the long-run average.

“Improvements in output volumes and overall order books will come as some relief for manufacturers following a weaker outturn in October. Firms will have also broadly welcomed the Autumn Budget, especially the progress on Apprenticeship Levy reform,” said Tom Crotty, Group Director of INEOS and Chair of CBI Manufacturing Council.

“Manufacturers’ top priority unsurprisingly continues to be for the Government to secure frictionless trade and a Brexit transition period. The sector will also be urging the Government to rethink its proposed approach to immigration policy, which, by placing tight restrictions on low-skilled labour, would have a particularly negative impact on manufacturers.”