Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
UK manufacturing output broadly unchanged in June quarter
(Sharecast News) - Manufacturers in the UK reported that output volumes remained broadly unchanged in the three months leading up to June, according to the latest industrial trends survey released by the Confederation of British Industry (CBI) on Monday. The stabilisation followed a rise in output for the first time in 18 months during the quarter to May, and looking ahead, manufacturers anticipated a modest increase in output over the next quarter.
Despite a notable improvement in total order books in May, the volume of export orders experienced a significant decline.
Both total and export orders were still reported to be below normal levels and their long-run averages.
Manufacturers indicated that stocks of finished goods were sufficient to meet expected demand, maintaining the same levels as the previous month.
Additionally, expectations for selling price inflation increased, with prices projected to rise at an above-average rate in the coming months.
The survey, which included responses from 248 manufacturers, highlighted that output volumes were unchanged in the three months to June, following an increase in the quarter to May, with a weighted balance of +3%, down from +14% previously.
Looking at the next three months, the outlook suggested a modest rise in output of +13%.
Notably, only four out of 17 sub-sectors saw output growth in the three months to June.
Growth was noted in the food, drink, and tobacco, motor vehicle and transport, and plastics and furniture and upholstery sub-sectors, which offset declines in other areas.
Total order books, while still below normal in June, showed significant improvement from the prior month, moving from -33% in May to -18% in June.
However, they remained slightly below the long-run average of -13%.
Export order books deteriorated further in June, falling from -27% in May to -39%, marking the weakest performance since February 2021 and falling below the long-run average of -18%.
Expectations for average selling price inflation rose in June, increasing from +15% in May to +20%, significantly higher than the long-run average of +7%.
Stock adequacy for finished goods remained stable, with a net balance of manufacturers reporting stocks as "more than adequate" at +14%, consistent with the long-run average.
"We've seen a stop-start recovery in manufacturing output in recent months, with higher activity over the last quarter concentrated in a relatively small number of manufacturing sub-sectors," said the CBI's lead economist, Ben Jones.
"But it's encouraging to see that manufacturers remain confident the economy is heading in the right direction and our June survey suggests that the recovery should broaden out over the summer.
"One note of caution is that order books remain soft - the sharp deterioration in export order books is particularly striking and is something to keep an eye on in the coming months."
Jones said the next government would be inheriting a challenging economic environment, and would need to have a credible plan to deliver sustainable growth.
"Now has to be the moment to focus on long-term solutions to tackle poor productivity and create an environment for business investment to accelerate.
"Top of the in-tray should be a cutting-edge trade and investment strategy, a net zero investment plan, and more support for firms to invest in automation and AI.
"At the same time, a focus on building momentum behind the 'big three' enablers of tax, planning and skills policies within the first 100 days can give firms a clear flight path for growth."
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.