Skip to content

Entrepreneurs Panel

Tony Caldeira
Debbie Pierce
Laura Tenison
Richard O'Sullivan
David Pollock
Brian Hay
Jeremy Roberts
Steve Purdham
Charlie Mullins
Jennie Johnson
Michael Oliver
Julie Meyer

Manufacturing output in biggest drop since 2009

Manufacturing output fell at the fastest pace since September 2009 in the three months to March - but production is expected to rebound strongly over the next three months, according to the CBI Industrial Trends Survey.

The survey of 471 manufacturers found that 18 per cent of firms said the volume of output was up over the last quarter, while 33 per cent said it was down.
In total, eight of the 18 manufacturing sub-sectors posted a decline in output. Two-thirds of this decline (relative to February) reflected weakness in the food and drink sector, with localised flooding and mild weather potentially having hit production.

Nevertheless, manufacturers forecast a strong rise in output over the next quarter, with expectations at the highest level for 13 months. In total, 39 per cent predicted growth in output over the next three months, while 16 per cent predicted a decline.

Meanwhile, total order books rose slightly from the level seen since the start of the year, and export orders also remained unchanged from February. Both measures sit just above average levels.

Companies still anticipate that prices will fall in the near-term, albeit to a lesser extent than they did in the previous month.

Rain Newton-Smith, CBI director of economics, said: "March has been a mixed month for the UK's manufacturers. While total order and export books remained steady, a drop in output reflected some volatility in the food and drink sector. Reassuringly, manufacturers expect a swift turnaround in activity.

"While the Budget included several policies that should drive growth, the absence of further measures to support innovation, and research and development, was a missed opportunity to boost investment. The Government's upcoming National Innovation Plan needs to address this vital issue."

  • Kathryn Parsons, co-founder of Decoded, started with little more than faith and determination, but four years later it’s grown into a global business. Ahead of her appearance at Accelerate 2015 in...

  • Author, writer and marketer Ryan Holiday on how entrepreneurs need to interpret failure.

  • Sue Vizard, business coach and author of Jump Start: The Start-up Book for Your Dream Business, looks at some of the questions solo entrepreneurs should ask themselves.

  • Ian Wright, founder and chief executive of NonExecutiveDirectors.com, is bringing together SMEs and NEDs - without the hefty recruitment fees.

  • Former professional golfer turned entrepreneur Colin Stevens has had a busy 18 months. The Better Bathrooms founder has increased turnover at the firm, secured a multi-million pound investment and...

Five Minutes With

Reputation is everything when it comes to running a successful business, according to Sacha Lord-Marchionne and Sam Kandel, founders of the Warehouse Project (WHP), a series of club nights featuring DJs from all over the world, which was launched back in 2006.

After travelling the world in a corporate role, Mike Wheeler decided that he had had enough of living out of a suitcase and so got a job running a small family business.