Output from UK manufacturers dropped in the three months to February, while prices are expected to head upwards, according to CBI data.
CBI's Industrial Trends Survey said a net balance of 19% of manufacturers saw a fall in output over the quarter to February, worsening on the 10% reported in the three months to January.
Output is expected to lift marginally in the three months to May.
Total and export order books were reported as below “normal” in February, but both improved relative to last month. #ITS pic.twitter.com/OU3Y22EwTE
— CBI Economics (@CBI_Economics) February 21, 2024
Conversely, expectations for average selling prices rose in the same period, with 17% of companies lifting the amount they charge.
In January, this figure was at 9%.
Anna Leach, CBI deputy chief economist, said: “UK manufacturing conditions remain challenging, with lower output volumes widely reported across the sector this month. But there were also some hopeful signs.
"Order books improved - in the case of export orders to above their long-run average - and manufacturers continue to expect output to improve in the months ahead."
Expectations for selling price inflation accelerated in February, climbing above their long-run average. Selling price expectations were the strongest since July 2023, but remained well below the multi-decade high seen in 2022. #ITS pic.twitter.com/zq55QWCyxy
— CBI Economics (@CBI_Economics) February 21, 2024