UK manufacturing output fell in three months to August, led by food, drink and tobacco, mechanical engineering and paper, printing and media; lower activity driven by supply chain bottlenecks, high input costs and oncoming economic downturn: CBI

Sample article from our Housing & Economy

LONDON , August 23, 2022 (press release) –

UK manufacturing output fell for the first time since February 2021 in the three months to August, with no growth expected in the three months ahead. That’s according to the latest monthly Industrial Trends Survey from the CBI and Accenture.

Manufacturers also reported order books falling below “normal” levels, and expectations for selling price inflation picking up.

The survey, based on responses from 257 manufacturers, found:

  • Manufacturing output volumes fell in the three months to August (balance of -7%, from +6% in three months to July), marking the first time since February 2021 that output has declined. Output is expected to be broadly flat in the next three months (-2%), making a significant worsening of expectations from just a few months ago.
  • Output increased in 10 out of 17 sectors in the three months to August. The fall in headline growth reported this quarter was largely driven by food, drink & tobacco, mechanical engineering and paper, printing & media.
  • Total order books were reported as below “normal” for the first time since April 2021 (-7% from +8% in July). Export orders were also seen as below par, to the same extent as last month (-12% from -12%).
  • Stocks of finished goods were seen as broadly adequate in August, after being seen as less than adequate in the previous quarter (+2% from -7% in July).
  • Expectations for average selling price inflation have picked up (+57% from +48%) and remain well above the long-run average (+6%).

Alpesh Paleja, CBI Lead Economist, said:

“From rising prices to bottlenecks in supply chains, manufacturers continue to operate against a background of high input costs and significant operational delays. When coupled with an oncoming economic downturn, it’s not surprising to see orders and activity ebb away as we move through the year.

“With expectations for future growth subdued, steps will need to be taken to shore-up confidence in the short to medium term – particularly supporting vulnerable firms and consumers with energy price rises.

“Against a backdrop of weaker activity, a permanent replacement for the super-deduction and bold action on business rate reform remain the best ways to support capital investment plans.”

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Dan Rivard
Dan Rivard
- VP Market Development -

We offer built-to-order housing & economy coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.