According to the CBI’s (
www.cbi.org.uk) latest Industrial Trends survey of 430 manufacturers, total order books in November returned to levels seen throughout the summer, and expectations for production over the next three months are said to be “robust”.
Meanwhile, manufacturers expect to increase average selling prices at their fastest rate since January 2014, in the wake of sterling’s sharp depreciation. The figures for export order books and output growth fell, but remained well above average.
CBI chief economist Rain Newton-Smith said: “It’s good to see manufacturers’ overall order books at healthy levels, and the outlook for output growth remaining robust. However, the weak pound is beginning to make its mark, and prices are expected to rise.”
On the day that the CBI released its statistics for November, the employers’ organisation also published a survey showing that companies plan to continue spending on innovation “to drive business growth, gain a competitive edge and raise productivity”. A total of 70% of respondents plan to increase or maintain their innovation spending, while only 7% plan to reduce it.
CBI director general Carolyn Fairbairn said: “The UK will need to work hard to become the front-runner in global innovation, creating a pioneering economic role for itself that drives prosperity in every corner of the UK.
Innovation is the nucleus of future economic and social development, so it’s encouraging that seven out of 10 firms will keep up — or even raise — their spending on new technologies and work practices to grow their business.
“As we prepare to leave the EU, this shows that firms are ‘rolling up their sleeves’ and looking to make the best of Brexit. Spending on innovation generates jobs and economic growth across the country, offering solutions to the challenges we face today and in the years ahead — from improving health-care and mobile technology to a new generation of autonomous vehicles.”