Manufacturing orders end 2017 on a high as automotive components boost UK factory output

Order levels for manufacturers have closed at nearly a 30 year high in the three months leading up to December 2017.

The latest CBI Industrial Trends Survey found strong overall order books boosted by car components and mechanical engineering.

Across the board, 14 out of 17 reporting manufacturing sub-sectors said they had above normal order rates.

Output growth was steady at a brisk pace in the three months to December, at a rate that was far above the long-run average, with levels topped in November 2017.

28 per cent of firms said their export order books were above normal, and 12 per cent said they were below normal, giving a balance of +16 per cent well above the long-run average of -18 per cent.

Anna Leach, CBI Head of Economic Intelligence, said: “As we head towards the end of 2017, UK manufacturers’ total order books remain at a near 30 high, with export order books remaining at their strongest since the mid-1990’s.

“While the lower level of sterling continues to support exporters, cost pressures remain intense. Businesses will expect to see the Government’s Industrial Strategy make rapid progress next year to support manufacturing and the wider economy in every corner of the UK.”