By Lynne Gowers on 30th October 2021

Manufacturing activity remains firm, but supply pressures mount, says CBI

UK manufacturing output volumes in the quarter to October grew at a similarly firm pace to September, according to the Confederation of British Industry (CBI).

The latest quarterly CBI Industrial Trends Survey shows manufacturers reported output increasing in 11 out of 17 sub-sectors. Growth was driven by the chemicals, aerospace, food and drink and tobacco sub-sectors, and firms expect output growth to pick up substantially in the next quarter.

However, concerns about supply shortages in the next three months escalated further in October. Almost two-thirds of firms cited availability of materials and components as a factor likely to limit output next quarter.

Manufacturers also expressed heightened concerns about labour shortages affecting future output, with two in five firms worried about a lack of skilled labour and nearly a third concerned about availability of other labour.

Anna Leach, Deputy Chief Economist at the CBI, said: ‘From higher material costs to labour shortages, manufacturers continue to face a number of serious global supply challenges, hampering their ability to meet strong demand.

‘Manufacturers are using key levers such as hiring new workers and planning further investment in plant and machinery and training to expand production. But with both orders and costs growth expected to climb over the next quarter, we’re not out of the woods yet.’

Written by Lynne Gowers
Disclaimer Although we attempt to ensure that the Information contained in this publication is accurate and up-to-date at the date of publication it may not be comprehensive, we accept no liability for the results of any action taken on the basis of the information they contain and any implied warranties, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement and accuracy are excluded to the extent that they may be excluded as a matter of law.

View our latest blogs

Take a look at our recent blogs below.

Explore our accountancy packages

If you need a little help to find the right accountancy service, don’t worry. Get in touch with our friendly team for a FREE service consultation.