UK manufacturing orders rose to their highest for at least 44 years in September but factories struggled to meet demand because of supply problems, a survey showed.
Total order books improved further after a strong result in August to post the highest result since the Confederation of British Industry’s survey started in 1977. Export orders improved to their strongest since March 2019, the survey of 273 firms found.
But output growth in the three months to September slowed for the second month in a row while remaining firm by historical standards. Out of 17 sectors, 11 showed growth with production led by food, drink and tobacco.
UK companies have been affected by supply chain problems including rising raw material prices, component scarcity and a shortage of lorry drivers and other workers.
Anna Leach, the CBI’s deputy chief economist, said: “Today’s survey highlights how amidst a variety of supply challenges, companies are beginning to struggle to meet high demand. Despite close to half of manufacturers surveyed reporting order books above normal, output growth has slowed sharply, albeit remaining relatively robust.
“As well as skill and labour shortages, sharply increasing material costs and shortages of key components, producers now face rocketing energy prices.”
Manufacturers expect to implement strong price increases in the next three months, the survey found, suggesting further upward pressure on inflation to come.
