UK manufacturing output falls at fastest pace since September 2020

Manufacturing output fell in February at the fastest pace since September 2020, according to a survey released on Tuesday by the Confederation of British Industry.

The CBI’s gauge of factory output for the three months to February fell to -16 from -1 the month before.

Meanwhile, the balance of total news order ticked up to -16 from -17, but remained very much in negative territory.

CBI deputy chief economist Anna Leach said: "Conditions in manufacturing remain challenging, with output disappointing and order books having thinned out since late last year.

"However, if growth is going to return to the sector on a sustainable basis, then manufacturers need more than the boost some will receive from lower energy prices over the winter season."

Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, said: "February’s CBI survey suggests the manufacturing sector isn’t quite out of the woods yet, in contrast to the message from the S&P Global/CIPS PMI, released earlier today.

"While the total orders balance edged up, it is not seasonally adjusted, and always tends to rise in February, after falling in January. Indeed, our seasonally adjusted version of the total orders balance fell to -18 - its lowest level since February 2021 when the UK economy still was in lockdown - from -17 in January.

"In addition, the official measure of output probably will be lower than the orders balance suggests, given the likelihood that manufacturers run down their inventories."