October 24, 2023
(press release)
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Sentiment within the manufacturing sector deteriorated over the three months to October, as output volumes fell, according to the CBI’s latest quarterly Industrial Trends Survey. Although output is expected to rise in the three months ahead, the share of firms citing weak orders or sales as a constraint on output rose to its highest since January 2021. Growth in average costs eased significantly in the quarter to October, to its slowest pace in three years. The pace of growth in both domestic and export selling price inflation also weakened over the past quarter. Numbers employed fell for the first time since January 2021. Investment in tangible assets (machinery, equipment, buildings, etc) is expected to fall in the year ahead, though manufacturers expect investment in intangibles (innovation and training) to increase slightly. The survey, based on the responses of 253 manufacturing firms, found: Anna Leach, CBI Deputy Chief Economist, said: “The warning lights are flashing red in our latest manufacturing survey, with business sentiment deteriorating, output volumes falling and manufacturers becoming more cautious over their employment and investment plans. “Amidst a difficult environment for manufacturers, the Chancellor should use the Autumn Statement to build confidence and get the sector firing again, through a focus on skills development, encouraging business investment and grasping substantive net zero opportunities.”
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