Key facts
- Manufacturing output is expected to stabilise in the next three months.
- Orders fell in October, with the balance dropping to -32.
- Labour shortages and high costs continue to challenge manufacturers.
Output in Britain's manufacturing sector is expected to stabilise in the next three months, according to a Confederation of British Industry (CBI) survey released on Thursday. The reading of -1 in the CBI's volume of output gauge for the next three months followed a period of flat or falling production that began in mid-2022. However, the survey indicated that challenges persist, with falling orders and increasing labour shortages. Stubbornly high costs are also impacting profitability, while deteriorating competitiveness and fragile business confidence are weighing on investment decisions. Official data has shown solid growth in Britain's manufacturing output this year. The CBI's monthly order books balance dropped to -32 in October from -9 in September. The survey's quarterly gauge of expectations for output in the months ahead improved to -1 from -30 in July, and the quarterly measure of expected domestic prices rose to +24 from +11.