UK Q1 manufacturing output falls; firms expect Q2 volumes to rise: CBI

Output fell in 11 out of 17 sub-sectors in the three months to March.

Manufacturers, however, expect output to rise modestly in the second quarter (Q2).

Expectations for future selling price inflation edged up for the third successive month in March, with the balance rising further above its long-run average to its highest since May 2023.

Total order books were steady compared with last month, and a little below their long-run average, but export order books deteriorated, a CBI release said.

Total order books were reported as below ‘normal’ in March and were broadly unchanged relative to last month at a level slightly below the long-run average.

Export order books were also seen as below normal and deteriorated relative to last month to below the long-run average.

Stocks of finished goods were seen as more than ‘adequate’ in March, with stock adequacy broadly unchanged since the previous month, in line with the long-run average.

“Manufacturers expect selling prices to rise a little in the months ahead. With demand still subdued, this likely reflects some pressure on input costs over recent months, slightly higher oil prices, higher shipping costs amid the Red Sea disruption, and signs that the global industrial cycle is beginning to turn upwards after a difficult couple of years,” CBI deputy chief economist Anna Leach said.

Fibre2Fashion News Desk (DS)