Manufacturing output volumes fell in the three months to November, and at the fastest pace since August 2020 – according to the CBI’s latest Industrial Trends Survey (ITS). Manufacturers expect volumes to decline at a similar pace in the three months to February.
The volume of total order books was stable at a historically weak level in November. Export order books improved relative to last month but remained well below average. Stock adequacy for finished goods rose, to stand above the long-run average.
Expectations for selling price inflation eased in November, standing in line with the long-run average.
Ben Jones, CBI lead economist, said: “Manufacturers face a challenging end to the year. What’s striking in this month’s survey is how consistently firms link the slowdown to uncertainty ahead of the Budget, with customers delaying purchases and investment until they know what’s coming.
“With the Budget now just days away, the Chancellor must provide much needed certainty and back the government’s growth mission rhetoric with pro-business policies. For manufacturers, this must include accelerated support to address punitive energy costs and increased Growth and Skills Levy flexibility – interventions that would boost competitivness, increase confidence, and unlock growth.”
