Manufacturing growth “picks up pace”
Posted on 06 Mar 2015 and read 1313 times
According to the CBI’s (
news.cbi.org.uk) latest Industrial Trends survey, activity in the manufacturing sector “picked up” in February, with output expected to grow faster still in the next three months.
The survey of 522 manufacturers found that total order books strengthened on already “robust” levels, climbing to a six-month high.
Export orders were “well above average”, re-gaining some of the ground lost towards the end of last year, but they still lag behind domestic orders. Output volumes increased, reaching their highest level for seven months, and 16 of the 18 sectors anticipate growth in the coming quarter.
The CBI said that manufacturers expect a modest rise in selling prices over the next three months, although expectations for price inflation remain moderate.
Rain Newton-Smith, the CBI’s economics director, said: “Our manufacturers now have more of a spring in their step, regaining some of the momentum lost towards the end of last year. The drop in oil prices is good news for the manufacturing sector in the UK, bringing with it lower operating costs, but North Sea producers are clearly suffering.
“Export orders picked up significantly — to a level not seen for six months — but uncertainty over prospects in the euro-zone will continue to weigh on export demand, so it’s imperative that we continue to help manufacturers sell their products and services into high-growth markets around the globe.”
The survey was conducted between 27 January and 16 February.