CBI reports increase in manufacturers' orders

The CBI says that of 436 manufacturers surveyed, 15 per cent responded that total order books were above normal and 29 per cent said they were below, giving a balance of -14 per cent, representing an increase of six points from the January survey.

Export order books also improved, registering a balance of -20 per cent in line with the long-run average (-21 per cent), but remained well below December levels (-11 per cent).

Looking ahead, manufacturers indicated that they expect some moderate growth in output over the next quarter (+5 per cent), driven mainly by motor vehicles & transport equipment and food, drink & tobacco. 

Expectations for output price inflation for the next quarter remain high (+20 per cent). Motor vehicle & transport equipment manufacturers reported its strongest inflation expectation in four years, offsetting the cooling of price expectations in the food, drink & tobacco sector.

Commenting of the survey, Carl Williamson, manufacturing sector lead, Mid-Markets, Lloyds Bank Commercial Banking, said, ‘These figures are further evidence of a positive start to the year for the UK’s manufacturing sector.