Manufacturing firms have noticed that their growth output has levelled off slightly in the last three months. The latest monthly survey that has been carried out by the CBI has seen that while growth has reduced slightly, the expectations for selling prices appear to stay at higher levels.
The survey was completed by nearly 450 manufacturing companies and recorded that output growth slowed over the course of the last quarter. The growth in the manufacturing industry was mainly driven by the food and drink sector, and the rate of growth has managed to stay well above the long term average predictions.
Those who responded to the survey have said that they expect the output growth to increase again over the course of the next month in order to reflect the faster pace seen in the three-month period to July and August. Manufacturing companyâs expectation for output price inflation has managed to stay strong after increasing in the quarter up until August, but the figures have eased off slightly in comparison to the first half of the year.
The total orders and export orders are expected to remain at high levels in the coming months, despite the total order books reporting slightly lower figures in the lead up to August.
On top of this positive outlook for the manufacturing industry, the CBI survey has shown that stock levels are at above adequate levels, even though they appear to be below the forecasted long-run average. Manufacturers are seeing solid growth and sales and it is thought that the pressures on the industry have become more moderate in comparison to earlier in the year.
Over the coming month 27% of companies feel that the selling prices will increase, with 9% expecting a decline and the rest thinking that they will remain level. On the whole, it would appear that despite a softening of growth, the Manufacturing industry is still doing well.