Manufacturing sector facing a tough winter

According to a new survey by the Confederation of British Industry (CBI), UK manufacturers are set to face a tough winter, despite a rise in output volumes in the last three months.

The industry trends survey, based on the responses of 230 manufacturing firms, found that while stocks remained adequate, total order books and export orders books were reported "below normal".

Total order books decreased by 5% in the three months to November, compared to a smaller 4% decline in October. Export orders in November improved slightly compared the previous month but were still down by 7%.

Manufacturing output increased in 9 out of 17 sectors, largely driven by industries such as food, drink and tobacco, and motor vehicles.

Furthermore, while selling price inflation has eased compared to earlier in 2022, it is still expected to remain well above the long-run average.

Anna Leach, deputy chief economist for the CBI, said:

"The rise in manufacturing output this month appears to be at least partly driven by improvements to supply chains.

"Total order books remained much weaker than earlier in the year, however, and output is expected to fall again in the quarter ahead."

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