Manufacturing output remains under pressure as firms continue to run down stock levels

24th July 2009 | manufacturing | Running down inventories remains the key focus for manufacturers with an economic recovery still viewed as being some way off.

Those are the findings from the latest CBI Industrial Trends Survey, which polls British manufacturers across a range of industries each quarter. It found a balance of 31% of firms had seen falls in output over the three months to July – an improvement on the previous quarter where a balance of 53% saw falling sales.

The survey also shows manufacturers are aggressively running down inventory, with stocks of finished goods reducing at their fastest rate in the 51-year history of the research.

Despite falls in the value of Sterling, export volumes were also disappointing, but firms said it was starting to get easier to access credit.