Manufacturing 'volumes drop in quarter' - CBI

Manufacturing output volumes fell in the quarter to June, according to industry body findings.

CBI says productivity dropped at “a similarly steep pace to the three months to May”, with total and export order books remaining weak.

However, it added firms expect the pace of decline to slow over the three months to September. 

The findings were revealed in CBI’s latest monthly Industrial Trends Survey, which questioned 335 manufacturers and showed output fell in 14 out of 17 sub-sectors, driven by the chemicals, metal products and mechanical engineering spheres. 

Total order books were reported as below “normal” in June (minus 33 per cent), with order book levels “remaining significantly below” the long-run average of minus 14 per cent. 

Ben Jones, CBI lead economist, said: “The UK's manufacturing sector is under significant pressure, contending with high energy costs, rising labour costs, pervasive skills shortages and a volatile global economic environment.   

“With long-term strategies presented, the Government must now continue to back up its ambitions with short-term delivery. 

“This includes rolling out welcome energy cost interventions as soon as possible, and pushing technology adoption to boost productivity.”

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