The survey of 489 manufacturers found that a rebound in the food and drink sector, following localised flooding earlier this year, drove an increase in overall output in the three months to May. Excluding food and drink, the output balance was stable, with the other 17 manufacturing sectors showing minimal movement.
Total orders rose slightly and exports were largely unchanged, with both remaining above their respective long-run averages. Meanwhile, little change in prices is expected in the months ahead and output expectations remain strong.
Rain Newton-Smith, CBI director of economics said: “Conditions in the manufacturing sector seem to be a little better overall, with improving order books compared with a couple of months ago. But domestic and global uncertainty remains high, alongside lacklustre export demand.
“Despite recent choppiness in emerging markets, China and India remain significant sources of potential demand. An exports commission would enable exporters to better exploit the growth opportunities provided by these and other growth markets.”