Motor equipment drives factory orders growth but sales slow across UK

Manufacturers have experienced a slowdown in order growth at the start of 2018, but growth has remained above long-term averages, says the CBI.

The Industrial Trends Survey found output has grown at a slower rate from February to March than over the New Year, driven by automotive equipment, chemicals and electronics.

The CBI has forecasted a slackening of inflation, but growth could be subdued as wage growth stays sluggish.

Anna Leach, CBI Head of Economic Intelligence, said: “Robust global growth and the low pound have gifted UK manufacturers a strong first quarter in 2018.  Although total order books and output growth slipped relative to February, demand and output growth remain well ahead of long-run averages.

“Confidence among manufacturers will have been given an additional boost by the agreement of a transition deal, giving them the confidence to continue investing and planning for growth. Other hurdles on the Brexit path need to be cleared in the same spirit - this includes a speedy agreement of a mutually beneficial trade deal for both the UK and the EU, with a customs union one of the options on the table.”