Manufacturing activity remains weak, according to CBI survey

UK manufacturing output volumes in the quarter to November continued to fall, according to the latest monthly CBI Industrial Trends Survey.

The survey of 307 manufacturers found that total order books improved on October, but remained significantly below their long-run average.

Export order books also strengthened on the previous month, where they were at their weakest since the 2008 financial crisis, but also continued to be below the long-run average.

Output volumes fell at a similar pace to October, with output expanding in only five of 17 sub-sectors.

The headline fall in output volumes was driven largely by the motor vehicles, metal product, and metal manufacture sub-sectors.

The main positive contributors to output were the mechanical engineering and plastic products sub-sectors, alongside a boost from aerospace output.

Looking ahead, firms anticipate output volumes to be flat in the next three months.

Anna Leach, CBI Deputy Chief Economist, said: “While the thick fog of uncertainty from a no-deal Brexit has lifted somewhat, the manufacturing sector remains under pressure from weak global trade and a subdued domestic economy.”

“Order books remain below average, and output volume continue to fall. When taking into account the deteriorating outlook for manufacturing globally, it’s clear that the outlook for the sector remains precarious.”

“The General Election is an opportunity for all parties to explain how they will shore up our economy. Ratifying a Brexit deal and moving on to build a vibrant future relationship with our biggest trading partner, based on frictionless trade, will be vital, both for UK manufacturers, and business as a whole.”