UK manufacturers noticed output progress for the previous three months ease again from document highs as corporations noticed inventory shortages strike document ranges.
The newest month-to-month industrial developments survey by the Confederation for British Business (CBI) stated exercise was “robust” as order books remained “agency.”
The survey of 262 main producers discovered that output elevated in 13 out of 17 sectors, with progress significantly pushed by the meals, drink, and tobacco sectors.
It reported 22 p.c progress for the quarter to August, representing a slow-down from the 37 p.c rise for the three months to July.
The CBI stated the survey confirmed this was pushed primarily by the motor automobiles trade, which noticed output drop from a near-record tempo to being flat for the interval.
Nonetheless, producers have stated they count on output progress to select up once more over the following three months.
Alpesh Paleja, lead economist on the CBI, stated: “Manufacturing exercise remained robust this month, with complete order books remaining agency and most sub-sectors reporting rising output.
“Nonetheless, early indicators from the info counsel that progress in exercise could have peaked.”
The survey additionally revealed that inventory ranges deteriorated to a brand new document low for the time in consecutive months.
Paleja added, “Many corporations are feeling the pinch from ongoing supply chain disruption, which additionally partly explains the continued power in pricing pressures.”
Companies reported a inventory adequacy studying detrimental 14 p.c for the interval, representing the worst determine since information started in 1977, as respondents highlighted, significantly, points in digital engineering and plastic merchandise.
Tom Crotty, group director at Ineos and chair of the CBI manufacturing council, stated: “Whereas it’s nice to see manufacturing performing effectively, there is no such thing as a getting away from the truth that many corporations are dealing with severe challenges, equivalent to workers shortages, provide disruption, and rising prices.
“It is necessary that these points are addressed shortly.”
By Henry Saker-Clark