CBI trends survey finds long term output strong despite slowing manufacturing growth

The Confederation of British Industry (CBI) has found that rates of growth in British manufacturing have declined slightly in the third quarter of 2017, but the outlook for long term economic prospects ‘remains strong’.

Its monthly Industrial Trends Survey asked 429 manufacturers for price and sales data, and found that despite a slowing level of output in food and drinks (manufacturing’s largest sector), growth remained above the long-run average.

Both total orders books and export orders remained strong, although total orders softened somewhat on August. The deterioration was relatively broad-based with nine of the 17 sub-sectors reporting a decline, relative to August.

Firms’ expectations for output price inflation remain elevated after picking up in the three months to August, but have eased compared with the first half of 2017.

Stock levels were above adequate levels, but below the long-run average.

Anna Leach, CBI Head of Economic Intelligence, said: “Manufacturers continue to report solid growth in output, while total order books and export order books are holding firm.

“Expectations for selling prices were largely in-line with the previous month, but price pressures do appear to have moderated somewhat since earlier in the year.”