Manufacturing sector saw strong growth in June

August 4, 2014 3:35 pm

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Demand for UK-made goods rose strongly in June, the latest Confederation of British Industry (CBI) Industrial Trends Survey of almost 550 firms shows.

Total order books picked up, with the food and drink sector being particularly robust, reporting its fullest order books in just under four years. Export order books rallied to a level well above the long-run average, driven by particularly strong results from the mechanical engineering, electronics and motor vehicle industries.

The survey of 514 manufacturers found output volumes also continued to rise at a similarly solid pace to that seen in the past three months, with expectations of stronger growth for the coming quarter.

Katja Hall, CBI Deputy Director-General, says: “Demand for British made goods remains buoyant and that’s helped drive this quarter’s further rise in output.

“Growth is broad-based, with the recovery spreading its roots and firms have high hopes for the coming quarter. However, the recent rise in Sterling could impact on the resilient export orders we’ve seen lately. As a result, now is the right time to capitalise on boosting manufacturing further by taking action to strengthen the UK’s supply chains across industry. This will help unlock further growth and increase exports.”

Key findings

  • 34% of firms reported that total order books were above normal and 23% said they were below normal, giving a balance of +11%.
  • 39% of firms said the volume of output over the last three months was up and 22% said it was down, giving a balance of +17%.
  • Firms expect output to grow faster in the coming quarter, with 44% predicting growth, and 12% a decline, giving an overall balance of +32%.
  • 23% of firms said their export order books were above normal and 25% said they were below normal, giving a rounded balance of -2%, above the long-run average of -20%
  • Expectations for output price inflation remained very subdued (+3%, from +4% in May)
  • 18% of firms said their present stocks of finished goods were more than adequate, and 10% reported they were less than adequate, giving a balance of +8%.

If you’re a manufacturing business looking for advice or support, the Manufacturing Advisory Service will be able to help you with your business aims, processes and bringing new products to market.  View more information on other business support and business grants.

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