Manufacturing output will continue to slump, says CBI

Output declined in more than half of 17 manufacturing sub-sectors, a survey has found. Credit: Pxfuel.com

 

Industry bosses say forecasts have shown the anticipated bounce back in manufacturing will not happen

Manufacturing output volumes have continued to fall in the three months to November, by the slowest pace since September 2019, according to the Confederation of British Industry.

The Industrial Trends Survey, which included 277 manufacturers, found that output had declined in more than half of the 17 manufacturing sub-sectors that were surveyed, with the highest drop in output coming from the aerospace industry.

CBI’s forecast for the coming winter period, however, has become increasingly dire. Last month CBI predicted that manufacturing output would rise by 15% over the next three months but this has now been revised down to a decline of 10% throughout the winter period.

In particular, manufacturing exports have suffered as total exports have fallen by 51% in November, marginally worse than in October (46%). Manufacturers also expect output prices to decline over the next three months.

Anna Leach, CBI Deputy Chief Economist, said: “Order books have softened again as global demand has been hit by intensified lockdowns, and manufacturers have trimmed their expectations.

Firms have done all they can to adapt their operations to the current conditions, but pressure remains intense. The extension of government support – notably the Job Retention Scheme – is very welcome.”

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