Manufacturers selling more stock, says CBI

Manufacturing is heading for a sweet spot ahead of summer, a CBI survey shows.

Order books are healthier this month compared to April, and output rose over the last quarter, according to the Industrial Trends Survey.

Mechanical engineering and chemicals enjoyed higher growth, and firms expect another rise in production over the coming quarter.

Despite output growth, pricing pressures remain strong, with manufacturers expecting a rise in their average selling prices.

Rain Newton-Smith, CBI Chief Economist, said: “The summer sun has come out early for Britain’s manufacturers. Robust demand at both home and abroad is reflected in strong order books, and output is picking up the pace.

“On the other side of the coin though, we have mounting cost pressures and expectations for factory-gate price rises are running high.

“Boosting productivity is key to alleviating some of the cost pressures that manufacturers are facing. Sustained investment in innovation and education will be vital to shore up the success of British industry.”

The survey was conducted between 25th April and 12th May.