Factory owners upbeat despite output slide

British manufacturers expect conditions to improve in the coming months, a long-running survey showed on Thursday, despite seeing a slide in output in November.

According to the latest Industrial Trends Survey from the Confederation of British Industry, output volumes fell in the three months to November, with a weighted balance of -12. That down on October’s -6. Of the 17 sub-sectors, 14 saw output decline.

Total order books were also reported as below normal for the time of year, with a balance of -19. However, the balance was an improvement relative to October, when it was -27.

And looking ahead, manufacturers were more optimistic, with a balance of 9 expecting output to rise in three months to February.

Ben Jones, CBI lead economist, said: "Output has underperformed expectations in recent months, with manufacturers pointing to uncertainty around the Budget, the US elections and recent political instability in Europe as among the factors leading customers to pause or cancel orders.

"Many firms still need to work through the implications of the Budget for their own plans for pay, hiring and investments. But it’s an encouraging sign that output volumes are expected to return to growth in the quarter ahead, with order books also showing some improvement this month."

The survey was conducted between 25 October and 13 November. A total of 317 manufacturing firms responded.