The UK manufacturing output and orders grew at slower rates in the quarter to July, following a period of exceptionally strong growth over the previous year, the Industrial Trends survey results from the Confederation of British Industry/Accenture showed Monday.
The output balance fell to +6 percent in three months to July from +25 percent in the quarter to June. Again a net 6 percent expects output growth to expand in three months to October.
Business optimism declined for the third straight quarter. Nonetheless, the score rose to -21 percent from -34 percent in the quarter to April.
Although average costs in the quarter to July increased at a slightly slower pace compared with the previous quarter, the balance still remained at 82 percent. A net 77 percent of respondents forecast average costs to increase in the coming quarter.
Investment intentions for the year ahead picked up in comparison to April for plant & machinery, product & process innovation and training. However, investment in buildings is expected to fall slightly over the year ahead.
"The manufacturing sector has been an economic bright spot in recent months, but output and orders have softened amid ongoing cost pressures, supply challenges and a generalised weakening in economic conditions both in the UK and globally," Anna Leach, CBI deputy chief economist, said.
