Manufacturing output volumes rise for first time since Nov 2022 - CBI

21st May 2024 15:13

(Sharecast News) - Output volumes in the UK manufacturing sector rose in the three months to May for the first time since November 2022, according to the latest Industrial Trends survey from the Confederation of British Industry.

Order books remained under pressure, however, with both total and export order books weakening in May.

The CBI's monthly gauge of industrial orders slumped to -33 in May from -23 the month before, despite the jump in output. Analysts were expecting a reading of -20.

CBI deputy chief economist Anna Leach said: "While it's positive to see that manufacturers' expectations for higher output volumes have finally been realised in the three months to May, this has been accompanied by a sharp deterioration in order books to close to their weakest since January 2021. Manufacturers expect to increase output through the summer months, but any recovery looks set to be fairly gradual, with order books soft and inventory levels relatively high.

"As the economy is starting to show signs of recovery, now is the time to pursue reforms that will boost growth and investment for manufacturers as well as ensuring the UK's competitive edge globally. The CBI's latest report "Tax and Green Investment" highlights the role that tax policies should play in incentivising green investment to help drive up to £57 billion annually in additional GDP, sending a strong signal to business that the UK is an attractive place to invest."