MANUFACTURERS believe that production levels in the UK will carry on growing for the next three months – despite orders decreasing this month.
The prediction has been revealed in the Confederation of British Industry’s (CBI) monthly Industrial Trends Survey.
The CBI found that 22 per cent of the businesses that responded to the survey said total orders were above normal, and 31 per cent said they were below.
This shows that orders were slightly down in September – but were still above the long-term average decline.
The survey’s responses suggest that export order book levels were down to the lowest level – minus 12 per cent - since October last year, but again the figures were above the long-term average.
But firms predict that production will increase over the coming quarter with 29 per cent of manufacturers thinking that output will rise in the next three months compared to 20 per cent saying that it will fall.
Pricing pressures have increased slightly, says the survey, but are less intense than in the first half of the year.
In the study, 24 per cent of manufacturers said they will raise output prices over the coming quarter whereas 10 per cent said they would lower them.
Andrew Palmer, pictured, CBI director for Yorkshire and The Humber, said: “UK manufacturers report some slackening in demand this month, following the volatility in financial markets and the slowdown in growth in our major trading partners.
“As a result, firms now say stock levels are high relative to expected demand.
“Nevertheless, UK manufacturers remain optimistic that production will continue to grow over the coming three months.”