Stockpiling hits record rates at manufacturers

UK manufacturing stocks rose at a record pace in the quarter to April despite activity in the sector growing modestly, according to the latest CBI Industrial Trends Survey.

Stocks of raw materials, work in progress, and finished goods grew at their fastest respective paces yet, suggesting that Brexit contingency planning was a priority for UK manufacturers.

The survey showed that output growth sped up slightly in the three months but remained “modest” overall.

The sector expects new domestic and export orders to fall in the coming quarter, as the proportion of firms citing “political/economic conditions abroad” as a key factor limiting exports hit its highest level since January 1983.

CBI chief economist Rain Newton-smith said the Brexit extension has been “encouraging”, but “does not give the longer-term certainty that [manufacturers] desperately need to invest in their businesses”.