Conditions stable in UK's manufacturing sectorStaff writer ▼ | May 26, 2016
The survey of 489 manufacturers found that a rebound in the food and drink sector drove an increase in overall output in the three months to May.
Britain Excluding food and drink, the output balance was stable
Total orders rose slightly and exports orders were largely unchanged, with both remaining above their respective long-run averages.
Meanwhile, little change in prices is expected in the months ahead and output expectations remain strong.
16% of businesses reported an increase in total orders (up from -11% in April), and 24% a decrease, giving a balance of -8%. 15% of businesses reported an increase in export orders and 29% a decrease, resulting in a balance of -14%.
36% of businesses reported a rise in output volumes, and 23% a decrease, giving a rounded balance of +12%, up from +1% last month. Output is expected to increase over the next three months, with 32% companies suggesting a rise and 12% expecting a decrease, leaving a balance of +20%.
Average prices are expected to fall over the next quarter, with 15% companies indicating an increase and 13% suggesting a decrease, giving a balance of +2.
13% of businesses reported stocks as more than adequate, and 4% less than adequate, leaving a rounded balance of +10%. ■