The UK’s order books are filling up fast, the CBI’s industrial trends survey shows

UK manufacturers have reported the joint strongest growth in orders since registrations began and the fastest increase in production since July, according to the latest CBI industrial trends survey.

The order book index, which measures how much orders are above or below normal, rose to +26 in May from +14 in April, matching previous records from March and November.

Export orders rose to +19 in May from -9, the highest since January 2018, and the meter for production over the past three months rose to a ten-month high of +30 from +19.

Total growth in manufacturing production increased in the three months to May with a balance of +30 from +19 in the three months to April, with production increasing at the fastest rate since the three months to July 2021.

But while growth in production accelerated among producers, confidence has fallen further.

The mood has dropped after Russia’s invasion of Ukraine, and investment plans are being screwed down.

Anna Leach, CBI’s deputy chief economist, said: “Manufacturers have reported production growth and improved order books in May, but cost pressures remain acute, forcing producers to raise prices.”

The government “can and must take action now” to support the economy, she added. She said: “Putting pounds in the pockets of people who are already struggling should not be delayed and it should be combined with action to support corporate cash flows and stimulate investment.”