Manufacturing output shows signs of stability, says CBI

Demand in the UK manufacturing industry has remained stable and output is expanding at a solid pace, according to the results of the CBI’s latest Industrial Trends Survey.

In its last poll of manufacturing output ahead of the EU referendum, the findings report that total order books strengthened slightly in the three months to June, particularly in the motor vehicles and transport sectors.

In terms of exports, total order books remained unchanged, suggesting that that the depreciation of Sterling has yet to have a material impact on overseas demand.

Output growth continued to be brisk, with firms raising their expectations for the next three months further. Meanwhile, CBI says selling prices are expected to be broadly stable in the near-term.

“The recent fall in the pound appears to have done little for our exporters. It may be that the growing uncertainty in the run-up to the EU referendum, combined with global risks elsewhere, has offset some of the benefits of a weaker currency at this time,” explained Rain Newton-Smith, CBI Chief Economist.

“But while British manufacturers had a tricky start to the year, there are more positive signs as output and demand stabilise.”