Britain’s industrial output grew at its slowest pace in a year in the quarter to July, although there was a slight easing of inflationary pressures and a rebound in investment, a quarterly survey showed.
According to data from the British Chamber of Industry, the manufacturing balance in the industrial trends survey fell to 6 points in July from 19 points in April, the lowest level since the quarter to April 20221, but higher than the long-term average of 2 units.
“The manufacturing sector has been a bright spot in the economy in recent months, but output and orders have softened amid ongoing cost pressures, supply challenges and a wider deterioration in economic conditions in the UK and globally,” said the Chamber’s deputy director , Anna Leach.
The Bank of England has warned that the economy is expected to slow this year as consumers face the highest inflation in 40 years, and many businesses have to battle a squeeze on their profit margins.
The Chamber’s data showed a big fall in the balance for average expected prices of manufacturing firms over the next three months to 48 points from 71, although it remains well above the average of 6 points.