Manufacturing output grows at fastest rate on record in last quarter
Increased production of cars, foodstuffs, and drinks helped the UK’s manufacturing output grow at the fastest pace ever recorded in the last three months.
According to the CBI’s latest Industrial Trends survey, output grew in 15 out of 17 sectors, with volumes up 37 per cent in total over the period.
That’s the fastest rate of growth for a single period since the survey began in 1975.
However, despite the rapid growth, concerns are still mounting over supply shortages, which could push the price of goods up over the coming months, and labour issues.
Stock adequacy, a measure of supply, dropped to -10 per cent over the past three months, its worst reading since 1977, as firms continue to deal with disruption to their supply chains caused by Brexit and the pandemic.
Anna Leach, CBI deputy chief economist, said: “The rebound in manufacturing activity has gathered pace in June, with output growth accelerating to its fastest pace on record and order books their strongest in over 30 years.
“Encouragingly, this performance is reflected in the majority of manufacturing sub-sectors and looks set to continue in the coming quarter.
“However, supply shortages continue to bite, and firms expect that to push through into prices in the months ahead.”
Tom Crotty, group director at Ineos and chair of the CBI Manufacturing Council, said: “It is hugely reassuring to see the manufacturing sector performing well after a particularly difficult start to the year. There is a real sense of optimism from many in the sector that there are good times ahead.
“However, the picture is not all rosy, with firms continuing to face difficulties arising from supply chain disruption and cost pressures. Staff shortages are also causing issues for many manufacturing businesses across the country. It will be critical for the government to continue to work with manufacturers to address these issues if the sector’s robust performance is to last over the long-term.”