UK manufacturing sees slower decline amid weak orders and elevated costs - London Business News | Londonlovesbusiness.com

"UK manufacturing output fell in the three months to February, although the rate of decline eased compared with January, according to the Confederation of British Industry's (CBI) latest Industrial Trends Survey (ITS). Manufacturers expect output to continue falling at a broadly similar pace in the three months to May, highlighting ongoing challenges across the sector. The survey, based on responses from 305 manufacturers, also showed that total and export order books remain historically weak, while expectations for selling price inflation stayed elevated."

"The weighted balance for output volumes fell to -14% in February, improving from -25% in January. Looking ahead, manufacturers anticipate output will drop at a similar pace (-12%) in the next quarter. Output decreased in 13 of the 17 sub-sectors, with the steepest declines seen in: Metal products Food, drink, and tobacco Mechanical engineering This broad-based slowdown reflects weak domestic demand and ongoing uncertainty over supply chains and costs."

"Total order books remain below normal, with a weighted balance of -28% in February, marginally better than January's -30%, but still considerably below the long-run average of -14%. Export orders also remained below normal, though slightly improved from the previous month (-26% from -30% in January), compared with a long-run average of -19%. "Many firms continue to report customers holding back amid low confidence and elevated cost pressures," said Cameron Martin, CBI Senior Economist."

Output volumes fell to a weighted balance of -14% in February, an improvement from -25% in January, and manufacturers expect a further -12% decline in the next quarter. Output decreased in 13 of 17 sub-sectors, with the largest falls in metal products, food, drink and tobacco, and mechanical engineering. Total order books stood at -28% and export orders at -26%, both below long-run averages. Expectations for selling-price inflation remain elevated at +26%. Stocks of finished goods rose to +14%, described as more than adequate. Data are based on responses from 305 manufacturers.

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