The latest CBI quarterly Industrial Trends survey (based on 481 firms) reports robust growth in orders in the last three months. Domestic orders rose at their fastest rate since 1988, although export orders were flat. The number of people employed in the manufacturing sector also continued to grow strongly.
Furthermore, firms are upbeat about the next three months, with expectations for total new orders growth at their strongest since 1977. Looking to the year ahead, manufacturers’ plans for investment in product and process innovation are at their strongest since 1989, with many firms expecting to spend on plant and machinery, as well as buildings.
Katja Hall, the CBI’s deputy director general, said: “The recovery in the manufacturing sector is keeping a good pace. Industry is performing well, as orders and hiring are on the up, and investment intentions for the year ahead are looking healthy across the board.
“It is not all plain sailing however, and there are still risks to the recovery. These include increasing international political instability and the recent rise in sterling, which could be weighing on exports. We need to continue to help manufacturers to export their products to high-growth markets across the globe, to give a healthy and sustainable boost to the UK’s recovery.”