British manufacturers are looking forward to growth in their output after experiencing a recent downturn. The Confederation of British Industry (CBI) revealed in its monthly industrial trends survey that expectations for production over the next three months have risen significantly. November’s expectation score climbed to +9, up from -1 in October, marking the best outlook since August.
However, recent performance shows a dip in output, with figures falling to -12 in the three months leading up to November, compared to -6 previously. Despite this, there was a slight improvement in industrial orders, which edged up from -27 in October to -19 in November. Manufacturers attribute the underwhelming output in recent months to uncertainties surrounding the UK budget, the U.S. elections, and political instability across Europe. These factors led some customers to delay or cancel orders, according to CBI economist Ben Jones.
Encouragingly, businesses are beginning to adapt, with expectations of a return to growth in the coming quarter. While many companies are still assessing the budget’s implications for their strategies in pay, hiring, and investment, the outlook remains optimistic. Meanwhile, export performance remains weak, with the gauge for exports unchanged at -27. Expectations for pricing over the next quarter have increased, with firms anticipating a moderate rise in prices, reaching a score of +11, the highest since August.
This survey, which reflects responses from 317 manufacturers, was conducted between 25 October and 13 November. It highlights cautious optimism within the manufacturing sector as businesses adapt to recent challenges and position themselves for potential growth in the months ahead.
Although challenges persist, the shift in expectations indicates a growing confidence among British manufacturers. If trends continue, the sector could soon see a rebound, supporting broader economic stability.
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