This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Momentum remains strong in manufacturing sector

18 December 2013

Growth in the UK’s manufacturing sector has continued to strengthen with order books and output touching an 18 year high for the second consecutive month, according to the latest CBI Industrial Trends Survey. 

A survey of nearly 400 manufacturers found that both the size of total order books and the pace of output growth over the past three months were once again the highest recorded since 1995. Export orders also rose considerably, reaching their strongest level for 22 months.

Manufacturers expect output growth to continue over the coming three months although at a somewhat slower pace.

Stephen Gifford, CBI director of economics, (pictured) said: “The manufacturing sector is showing further signs of momentum with nearly all sectors reporting growth for a second month. Total order books and output growth have maintained the strong performance from last month, while export orders have also shown an encouraging upturn in fortunes. While risks remain in the Eurozone and beyond, this survey provides further evidence that the recovery is becoming more embedded.”

Key findings:

  • 35% of firms reported that total order books were above normal in December and 23% said they were below, giving a balance of +12%, the highest balance since February 1995 (+13%)
  • 34% reported that export order books were above normal in December and 23% that they were below, giving a balance of +11%, well above the long-run average of -20%
  • Growth in the volume of output in the three months to December was unchanged from the three months to November, when it was at its fastest rate since January 1995 (+29% balance), with 50% reporting it had gone up and 21% down 
  • Firms expect output growth to continue at a firm but somewhat slower pace in the next three months: 35% expect to raise output and 19% expect to reduce output, giving a balance of +16%
  • Output price expectations (+11%) rose to the highest level since February 2013 (+20%), with 20% stating average prices at which domestic orders are booked were up and 9% down
  • Stock adequacy of finished goods (+8%) was below average (+14%) for the fourth consecutive month.


More information...

Print this page | E-mail this page

RELATED CONTENT...


Article image Government failing to promote UK manufacturing?

The Government is failing to promote UK manufacturing and remains more committed to the financial sector than UK industry, according to a poll commissioned by the Institution of Mechanical Engineers (IMechE). Full Story...

Article image CBI: Moderate boost to output prospects for manufacturers as order books improve

UK manufacturers expect modest growth in output in the coming three months, while order books improved compared to the disappointing figures from August, the CBI saidFull Story...

EXCLUSIVE Where does food sector fit into Mactavish report?

42 Technology launches new manufacturing practice

Parlimentarians 'go behind scenes of food manufacturing'

MOST VIEWED...


Article image Spray and save on the glazing process

Food glazes are widely used in the bakery sector to improve the look and taste of baked products. Traditionally, this coating process has resulted in substantial waste. Technology advances mean that this is no longer the case. Full Story...

Article image Your flexible friend in the food factory

Suzanne Gill finds out where thermal imaging technology can help around the factory. Full Story...

A dry-ageing process improvement

What role does refrigeration play in the supply chain?

Self diagnostics: an enabler for predictive maintenance

http://www.appetite4eng.co.uk